HR Management Report:

Piedras Negras Construction and Development Corporation

Recruitment

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 Table of Contents

Executive Summary 2
Organizational Profile 4
HR practices 9
HR Discussion 17
References 26
Appendix 28

1
 Executive Summary

In a span of 25 years, ​Piedras Negras Construction and Development

Corporation (PNCDC) has established itself as a technology-advanced and
quality-maintained construction company in the highly competitive construction and
development industry. From solely leasing heavy equipments to offering general
engineering and construction services, PNCDC sought and withstood the challenges of
the ever-changing industry by developing and supplementing its Engineering Division.

A highly contributing factor to the unwavering operations of PNCDC is the

prevailing management of their Human Resources (HR). Human Resource
management (HRM) is “the policies, practices, and systems that influence employees’
behavior, attitudes, and performance” (Noe, Hollenbeck, Gerhart & Wright, 2015). HRM
practices include job analysis and design, HR planning, recruitment, selection, training
and development, compensation, performance management and employee relations.
These practices further maximize the company’s performance through effective policies
and competent workforce.

PNCDC strategically conduct the HRM practices by strictly adhering to the

responsibilities that they entail. The company intends to cater its HR strategic needs
more intensely through deliberate recruitment and selection, and effective training and
development. They strive to exalt their compensation benefits to the employees that
would continually provide them a competitive advantage over their competitors.
Moreover, PNCDC attentively monitor employee performances by enforcing behavior,
competency, and quality measures. Through employee involvement procedures, the
company is also able to strengthen their labor relations. Participative work is given
emphasis as it gives the company an open platform to perform efficiently. With regards
to employee separation, PNCDC implements clear policies and due process that ought
to be understood by the employees.

2
 The reporters were able to identify that the PNCDC’s challenge with regards to
loyalty among its employees was the most pressing and imperative. This issue is
reflected on the inability to maximize productivity and ultimately, profit. This prompted
the reporters to suggest both monetary and non-monetary incentive schemes as a
potential solution to the company’s problem.

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 ORGANIZATIONAL PROFILE

Profile and Description of the Company

d (PNCDC) is a PCAB licensed business that offers Class A General contractors.

Philippine Contractors Accreditation Board (PCAB) is a law that ensures reliable
contractors are solely allowed to undertake construction projects in the country. PNCDC
have been in the construction industry for the past twenty five (25) years, continuously
developing world class projects such as Golf Course, Race Tracks, Airport, Bulk
Earthworks, Excavation, Hauling and Structural Works and Housing or Subdivision
development projects.

Scope of Services
PNCDC specializes in general engineering and construction services, which
comprises of the following:
● Bulk Earthwork & Excavation Works
● Structural Excavation Works
● World Class Horse Racetracks
● Complete Golf Course Development
● Airport Runway Construction & Repair
● World-Class Horse Racetrack Construction
● Major Site & Subdivision Development
● Mass Housing to High-End Residential Unit Construction
● Clubhouse Construction
● Road Constructionist
● Heavy Equipment & Trucking Services
● Drainage & Flood Control System
● Water and Fire Control System
● Sewerage Piping System
● Reservoir and Electrical Water Tanks
● Offshore Berthing Facilities
● Demolition Works

Vision Statement
To be renowned as a strong, reputable and professional general contractor that
responsibly addresses the needs of our clients, owners and employees.

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 STRONG - Able to:
o Provide our own resources
o Be financially sound
o Acquire and develop pool of technical and managerial experts
o Be able to protect our shareholders’ investments

REPUTABLE - Able to:

o Complete projects according to client’s specifications and deliver on time
o Maintain good credit standing from financial institutions
o Maintain mutually beneficial relationship with our contractors and suppliers.

PROFESSIONAL - Able to:

o Manage our business effectively and efficiently by having strong
operational and management systems
o Practice stable and sensible management of funds
o Maintain high regard for the observance of laws of the country
o Give proper regard to health, safety and environment.

Mission Statement

PNCDC is committed to offer clients with consistent high quality and good value
construction and heavy equipment leasing services.

Company Strategies

PNCDC still sees itself as one of the most stable construction company in the
industry for the next 2-3 years. For the longer term, the company works toward
succession planning as it hopes to see the next generation of the owners’ children to be
managing the corporation. They plan to set themselves to higher studies and on-site
employment in preparation for the next line of owners and managers.

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 The current competitors that the company is facing are the firms or contractors
with at least 25 years’ experience in the industry and possessing at least Class A
license from PCAB (Philippine Contractor’s Accreditation Board) servicing major site or
land development requirements of Blue Chips or Class A developers in the industry like
Ayala Land Inc., Makati development Corporation, DMCI, Mega world, Filinvest, etc. -as
these are some of the company’s clients. In order to have a better HR unit than the
competitors PNCDC send key managers to graduate schools such as AIM or Ateneo
Business school to make a positive impact to the firm.

HR strategies on organization

1. Achieve competence in delivering, in the most cost-effective manner, the

production process at the required quality, specification and delivery time by the
client.
2. Develop and improve on current technologies to make production more efficient
and more flexible to respond better and more quickly to customer’s needs and
requirements.
3. Undertake continuing assessment of clients’ needs by going direct to clients.
4. Hire Professional Managers to assist us in the implementation of strategies and
plans.
5. Make adaptation in the organizational component consistent with where the
company is going along, and also where everyone in the organization knows
about the company’s vision and how they can contribute to its attainment.
6. Implement effective Code of Discipline system- in writing, part of Employee
orientation

The firm develops and maintains employee relations activities like annual
Christmas parties and summer outings. Piedras also offers special cash incentives for
deserving employees in order to motivate them.

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Structure of the HR Unit

PNCDC has seventy two (72) regular staff and thirty seven (37) project
employees. These are the manpower in order to complement the firm. There are four
(4) positions in the organization, namely: the Excom/Management, Department Heads,
Supervisor/ Team Leader and Rank and File. Under Excom/ Management, this includes
the Chairman & President, VP for Operations, VP for Purchasing, VP for Engineering
and the General Manager. For the Department Heads, this includes the Assistant
General Manager, Accounting Manager, Purchasing Manager, Personnel Manager, VP
for Engineering, Project Operations Director, Equipment and the Maintenance Head and
Project Manager. The Supervisor/ Team Leaders unit consists of the Admin Officer,
Purchasing Officer, Billings Officer, Safety & Documentation Officer, Site Engineers,
Officer Engineers, Surveyor and Head-Hauling. Operators, Drivers, Helper Mechanics
Lube man, Utility Personnel, Welder and Checker are also under Rank and File.

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 ​ his image shows the organizational chart of Piedras Negras Construction
Figure 1. T
and Development Corporation (PNCDC).

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 HR Practices

Recruitment and Selection

Recruitment activities in a business involve attracting people to apply for a job

within the organization. PNCDC often magnetize talent via print ads, online posts on
Jobstreet, JobsDB, Facebook, and TESDA (Technical Education and Skills
Development Authority). These advertisements play a big part in the company’s
recruitment process as they can easily hire standby applicants whenever they need to
fill out a vacant position. Often, the company has a job vacancy for drivers. They take
approximately 2 weeks to process vacancies. PNCDC does not conduct forecasts in
their HR planning, but they determine their HR recruiting process based on their load of
construction projects. Personnel policies that determine the nature of their vacancies
include the training of understudies and inter-departmental training in order for the
employees to multitask.

The selection process of a company involves choosing and hiring most qualified
applicants that are most suitable for the job. Many firms opt to conduct multiple tests
and interviews to ensure that they are able to hire the right applicant that will best suit
the needs of the company. In the case of PNCDC, their evaluation standards for
choosing a selection method are job specific standards. The company makes sure to
conduct interviews for all applicants regardless of position. During interviews, the
company impressively look for assigned job competencies and communication skills
that could be valuable to the business. Aside from holding interviews, PNCDC also
subject their applicants to “Trade Tests”, which include physical ability tests on certain
skilled labor like plumbing and carpentry. These tests assess the capacity of their
knowledge and abilities in performing the applied job.

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Training

Training is a consequential undertaking that aims to enrich new and current

employees with new skills or to enhance their already possessed skills. It can be
customized to the needs of the company, and may be considered an investment.
Well-trained employees produce better outputs when given a certain task, compared to
those who have never attended a training program of any kind. ​PNCDC require their
employees to attend skills development and competency training programs, such as the
said “Trade Tests” for skilled workers like heavy equipment operators (bulldozers, wheel
loaders, excavators, etc.) and drivers (dump trucks). This tests and programs are
necessary to achieve the NATIONAL CERTIFICATE II, issued by TESDA for the
completion of competency requirements under the Philippine TVET (Technical
Vocational Education & Training) assessment. Moreover, PNCDC strictly require
employee attendance to Basic Occupational Safety and Health (BOSH) and
Construction Occupational Safety and Health (COSH) training programs by key
technical officers, with a number of technical staff trained to date.

PNCDC follow the categorization of technical, operations, and administration with

regards to creating training programs. The company’s top management is left to either
approve or reject the training program proposals. Current employees are given training
yearly or as needed. Department heads are in charge in views of conducting training for
new employees, while the HR department handles the basic orientation, employee
policies and procedures, and the code of conduct. Together with actual on job
evaluation performance, feedback for employees are used to assess the training needs
of current and new employees. In addition, the company measures the effectiveness of
their training programs by observing the employees’ actual and on-site performance. To
boost the employees’ motivation and willingness to learn, incentives and rewards are
given at the end of the year.

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Compensation

Compensation is the total cash and non-cash payments that are given to
employees in exchange for the work they contribute to the business (Kappel, 2018).
Smart employers acknowledge the notion that keeping quality employees requires
providing the right compensation and benefits package. Compensation includes wages,
salaries, bonuses and commission structures (Leonard, 2019).

PNCDC’s compensation program is as follows:

a. All existing salaries of both regular and project employees are reviewed
yearly, and corresponding salary adjustment and alignment are being
done to conform to all the legislated minimum wage, wage procedures,
ECOLA, etc.
b. PNCDC salaries are aligned to the industry standard salaries and wages
for the personnel working in the construction industry.
c. Managerial and technical persons are sufficient for the size of the
organization and projects being handled by the company are constantly
monitored and adjusted.
d. Skills inventory of present manpower complement are regularly evaluated
and conducted.
e. Regular and continuous review of the company’s compensation and
benefits plan are being undertaken with the end of making it competitive
vis-à-vis the industry standards and of making it more attractive for the
existing employees.

PNCDC also implements salaries at par, if not above with industry standards,
and minimum wage for all entry level positions. These are used for both job-based and
skill-based. The pay of the employees include regular salaries, 13​th month pay,
bonuses, allowances, and other cash and non-monetary incentives, all of which are
always given on time.

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Additionally, PNCDC also offers complete Package of Employees benefits such as:

A. Service Incentive Leaves

Day 1 of regularization up to 5 years of service​- 10 day-service incentive leave (5

holiday and 5 sick leave benefits) as compared to the legislated five-day service
incentive leave.

5 years and 1 day in service up to 10 years in service – 14- day service incentive
leave ( 7-day holiday and 7 -day sick leave).

B. Paternity or Maternity leaves

C. Special contribution for death of immediate family

D. Employee Loans

E. Birthday Leave

F. Service Awards ( 10 years in service, 15, etc.)

G. Introduction of ​Retirement Package ​for all employees working at least 5 years in

March 2018.

(REPUBLIC ACT NO. 7641, December 9, 1992​, R

​ ETIREMENT PAY LAW,

AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS

AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES,
BY PROVIDING FOR RETIREMENT PAY TO QUALIFIED PRIVATE SECTOR
EMPLOYEES IN THE ABSENCE OF ANY RETIREMENT PLAN IN THE
ESTABLISHMENT)

H. Overtime Payment for all employees except for the following staff who are not
entitled to overtime pay:

1. Managers and/or Supervisors

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 2. Officers/ members of the managerial staff management staff) wherein:

a. the primary duty consists of the performance of tasks directly related to

the management policies of the company;

b. a staff who customarily and regularly exercise discretion and

independent judgment;

c. One who regularly and directly assists a managerial employee whose

primary duty consists of the management of the department or division of
your company;

d. Under general supervision, one who executes work along specialized

and /or technical lines requiring special training, experience or
knowledge;

e. Under general supervision, one who executes special assignments

and tasks.

I. Provide employee support services:

1. Housing units for all employees assigned at project site, water and
electricity shouldered
2. Uniforms for all staff
3. PPE or Personal Protective Equipment for all technical staff during
project operations
4. Service Vehicles for Key staff
5. Legal assistance for work-related cases filed against employees
6. Meal allowances for selected employees
7. Proper work environment

J. Promote internal communication:

1. PNCDC has its own main domain for email

2. Inter-office memos

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 3. Provision of cellular phone units for faster communications
4. Provision of landline and fax units to project sites
5. Provision of USB and portable broadband/internet lines and personal
laptop units

K. Promote health and safety practices:

1. HMO- COCOLIFE card issued for all regular employees and

dependents of Owners.
2. Company shoulders medical needs of project employees for any
accidents that transpire at project site
3. Special contribution to project employees during times of personal
tragedies like death in the family or hospitalization

Performance Management

Performance management is an integral part of PNCDC’s HR operations.

Through this system, the company monitors employee performances in order to see
their congruence to the goals of the business. According to Noe et al. (2015), an
excellent performance appraisal comprises of establishing employee goals which are
parallel to the company’s strategic goals. In line with this, PNCDC allow their employees
to be involved in the goal formulation to assess quality refinements that are necessary
for them and the company. Job Performance Review and Evaluation Program are some
of their performance management schemes that are conducted yearly. They regulate
them yearly to cater the flexible disposition of the construction industry. Similarly, the
company carries out coaching and feedback sessions for their managers, supervisors
and staff. Through feedback, employees are able to adjust their performance to the
goals of the company.

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 Having the same evaluation standards toward employees with similar jobs is a
way to a good appraisal process (Noe et al., 2015). PNCDC’s measures on employee
performance are categorized by behavior, competency, and quality. Professionalism,
positive attitude, trustworthiness and loyalty are the principal basis of employee
behavior. Employees are measured by their courage to take initiative and to exercise
responsibility and accountability for their job duties and tasks. Furthermore, leadership,
resourcefulness and problem solving abilities are given emphasis in measuring their
competencies. Employees are expected to meet and solve any problem within their
capacity. With regards to quality, their work must be accurate, free of error and on time
to be categorized as quality output. Innovation is an exemplary criteria that is highly
encouraged, along with responsible stewardship. Employees are also measured by their
saving consciousness, which should result in proper and effective control of company
resources. Their customer service is observed by how they treat clients and how the
clients themselves give feedback about the assigned employees.

Labor Relations

Labor relations is the governance of work and relations between an

organization, employers, employees and their representatives (Trebilcock, 2011). The
relationship between the employees and the organization is one that needs attentive
monitoring. PNCDC applies a suggestion system to promote employee involvement,
which largely contribute to the overall performance of the company. Further, an
Employee Satisfaction Survey is being administered to determine the perception of the
employees towards the management styles of the company. This survey plays an
effective role in imposing corrective measures for the management team by improving
their labor relations.

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Employee Separation

Termination of employees is a crucial, sensitive phase in the the final staffing

process of a company. For PNCDC, forced removal of employees can only be based on
violations of their strict code of ethics and policies. Absenteeism, for one, is a common
cause for employee dismissal. Even if an employee has the necessary skills and
abilities, s/he will be reprimanded for multiple absence.The company strictly adheres to
their policies, memos and due process, which the employees are surely aware of. With
regards to voluntary separation, the main cause for PNCDC employees is retirement. In
line with the company’s 25 years of experience, aging employees is a fitting matter. A
resignation letter must be submitted 30 days prior to the time of separation, and exit
clearances like quit claim and waivers must be presented before the exit interview is
conducted. Exit interviews are highly significant to the HR unit as they provide different
perspectives - from the resigning employees - on the effectiveness of HR policies and
the various elements of the company.

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 HR Discussion

Statement of the HR Issue

Taking into account mainstream firms which are characterized by the goal to
maximize profitability and productivity, certain stakeholders should absolutely be
considered. One of which, are the employees of the company. The employees are
tantamount to the success of the company. This is so because, they carry out daily
tasks in line with the company’s vision and mission in order to operate and eventually
meet their key performance indicators. Product or service quality, if not solely, are highly
dependent on its employees. And the particular quality a company will provide will
certainly be reflected through their revenue, which is necessary for the going concern of
the business. All these considered, it becomes rather clear that the workforce should
not be taken for granted. However, this is not the case.

According to the study by Anjum, Ming, Siddiqi, and Rasool (2018),

organizations’ single focus on profit, which is based solely on stock prices, has been
very evident over the last few decades. The authors signified, however, that the outliers,
which are namely the employees are being disregarded despite their established value
as the most important assets of the organization. As per Anjum et. al. (2018), this
negatively impacts job productivity which the authors defined as “​involves measuring
the efforts of an individual to effectively and efficiently convert the input resources into
output.” According to Anjum et. al. (2018) and Newmann (2013), job productivity
integrates both the concepts of employee productivity and organizational productivity
which can be measured by quality considerations.
Upon consultation with the general manager of PNCDC, Mrs. Marlene Maristela,
maximizing productivity is the company’s current main HR-related problem. According
to her, this challenge is caused by such factors: 1) lack of loyalty from the employees, 2)
aging employee population, and 3) lack of proper delegation of tasks.

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 The company is said to be always losing skilled regular and project employees in
operations (drivers, carpenters, etc.) due to the boom of the construction industry. For
instance, the nature of project employees is not subject to permanent tenure. Thus, the
inevitability of these employees to only stay for the duration of the assigned project
contributes to the lack of loyalty on this level. There is also no loyalty in the sense that
they leave the company and transfer when they find better opportunities elsewhere.
With PNCDC in its 25th year, the average age of the company’s employees now ranges
from 50 – 60 years old, since most of the employees have been with the company since
the start of its operation. The lack of delegation of tasks in PNCDC is evident in its
system of managing tasks under one umbrella, and does not assign tasks towards
specific jobs. An example of which is its administration department handling accounting,
purchasing, and personnel for the eight corporations that PNCDC is currently managing.

Such factors can indeed take toll on the company’s productivity management and
maximization. According to the The Loyalty Research Center (1990), employee loyalty
can be defined as the commitment of employees for the success of the organization that
they are working for. The Loyalty Research Center (1990) also notes that employees
exhibiting loyalty do not actively search for alternative employment and are not as
responsive other offers. Employees who have developed affection to an organization
are more likely to demonstrate loyal behaviours such as improved productivity, greater
efficiency, and high-quality service orientation to customers (Rajput, Singhal, & Tiwari,
2016).

Proposed Solution

In the previous statements, the company’s main HR challenge of maximizing

productivity has been caused by the factors of lack of loyalty among employees, aging
workforce, and the lack of delegation of tasks. However, the reporters deem this to be
the most imperative issue since according to studies, there is a strong correlation
between loyalty and productivity compared to the other factors. Thus, it is the main goal

18
of the reporters to improve loyalty among employees to positively impact productivity
and profitability. In response to the issue, the reporters have aimed to provide monetary
and non-monetary rewards in the form of giving retention bonuses and holding seminars
on employee loyalty and motivation.

The reporters have came up with this solution as per Byars, et al., (2018) stating
that retention bonuses as a successful technique in instilling employee loyalty. Also,
their decision is also influenced by a Glassdoor study stating that a retention bonus can
help employees stay as having a competitive pay reduces turnover (Glassdoor, 2017).

A retention bonus can be defined as: “an extra payment that is given to an
employee as a way of persuading them not to leave the company, especially at a time
when the company is experiencing big changes” (Cambridge English Dictionary, n.d.).
According to Kagan (2019) in an article in Investopedia, retention bonuses are a one
time payment wherein the value of it may be dependent on an employee’s length of
service to the firm. Kagan (2019) says that this financial incentive is most preferred by
companies due to not having the necessary finances to commit to permanent salary
increases.

Adding financial incentives must also be succeeded by non-monetary

improvements such as improved work culture and environment in order to pose a
positive impact on maximizing productivity and profitability. In fact, in a study by
Gabčanová (2011), findings show that non-monetary incentives are getting their first
place. According to Gabčanová (2011), internal communication, personal development,
and employees’ education are the key factors of non-monetary motivation. This is also
mirrored in a study by Jeffrey (2003) which found that “the psychology of tangible
non-monetary incentives allows them to motivate performance as well and in some
cases even better than the market value of those incentives as cash awards.”

As per the general manager of PNCDC, Mrs. Marlene Maristela, the company
are already taking steps toward the improvement of the educational background of its

19
employees. This is executed by sending the firm’s key managers to graduate schools
such as Asian Institute of Management and the Ateneo Business school. Certainly, the
reporters recommend that the company continue to capitalize and further enhance
human resource development through non-monetary schemes such as seminars,
conferences, and trips.

Application

The retention bonuses would be instilled as part of the company’s overall pay
and compensation strategy. It would be applied to key employees of the company, both
regular and project-oriented. This scheme aims to lessen voluntary employee turnover
in PNCDC.

In the case of the project employees, retention bonuses would be given 3 to 12

months after the deal of their project has been closed or before their assigned project is
finished. This is to ensure that the employees will stay throughout the duration of the
project, in hopes of them staying in the company, be renewed, and be assigned to other
projects. The retention bonus would be calculated by getting the 10% of an employee’s
annual salary.

As for key regular employees, giving retention bonuses would vary per employee
and also be given through a one-time pay, depending on the circumstances (i.e. sale,
merger, acquisition of the company, organizational changes, etc.). The percentage of
the bonus would also be dependent of the value of the employee and his/her length of
service to the firm. Also, since this strategy is a bonus/ incentive, there is usually no
written agreement for the employee to stay in return for the money or exhibiting a ​“quid
pro quo.”

Considering the non-monetary incentives, the general manager should arrange

seminars and conferences to be conducted by professional training consultants at least
annually. The staff would be segmented to three different groups. Each seminar would

20
accommodate one group only to ensure the uninterrupted daily operations of the
PNCDC. As for the trips, it would be in discretion of the company to award it to either
the top performer alone or to the top performing team.

Recommendation

Due to time constraints, the reporters chose to focus more on the factor of lack of
loyalty in the workplace. Thus, the reporters would like to recommend possible solutions
for the aging workforce and lack of delegation of tasks in Piedras Negras Construction
and Development Corporation.

For the aging workforce, the reporters recommend moving older workers to
positions wherein they can mentor and train younger workers. This strategy then
creates a mentoring culture in the workplace which then helps in younger employees’
career development. According to a journal article by the National Center for Chronic
Disease Prevention and Health Promotion of Centers for Disease Control and
Prevention, this strategy allows the employer to enable older workers to still contribute
in the workforce, as this utilizes and maximizes the non-physical advantages they bring
to an organization -- experience, knowledge, and dedication. The reporters also
recommend giving older workers flexible work hours and workplace conditions.

As for the delegation of tasks it will be related to the recommendation for the
aging workforce. The reporters recommend that the administration craft job designs and
open new job positions. These job positions will be filled out by the newly trained
younger employees who fit the job and meet the job requirements.

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 Pictures of the Company Visit

​ ne of the reporters, Vince Maristela, interviews the general manager of

Figure 2. O
Piedras Negras Construction and Development Corporation (PNCDC), Mrs. Marlene
Maristela.

22
 ​ mployees from the Operations Office of PNCDC are seen doing their tasks
Figure 3. E
in one of the floor’s cubicles.

Figure 4. ​Employees from the Human Resource Unit of PNCDC are going about their
tasks in their unit’s office.

23
 Figure 5. ​Taken right after the interview, one of the reporters, Vince Maristela,
and general manager of PNCDC, Mrs, Marlene Maristela pose for a picture for
documentation purposes.

24
 ​ ne of the reporters, Vince Maristela, and general manager of PNCDC,
Figure 5.1. O
Mrs, Marlene Maristela pose for a picture for documentation purposes.

25
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Prevention. (2012, July). Older employees in the workplace. ​Centers for Disease
Control and Prevention.​ Retrieved March 16, 2019, from
https://www.cdc.gov/workplacehealthpromotion/tools-resources/pdfs/issue-brief-n
o-1-older-employees-in-workplace-07122012.pdf
Working at Piedras Negras Construction & Development Corp. company profile and
information | JobStreet.com Philippines. (n.d.). Retrieved from
https://www.jobstreet.com.ph/en/companies/695606-piedras-negras-construction
-n-development-corp
WHY EMPLOYEES QUIT, ACCORDING TO NEW GLASSDOOR ECONOMIC
RESEARCH. (2017, February 15). Retrieved from
https://www.glassdoor.com/about-us/employees-quit-glassdoor-economic-resear
ch/

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 Appendix A: Transcription of Interviews

The following shows the transcribed face-to-face interview between Vince Maristela,
one of the reporters, and Mrs. Marlene Maristela, General Manager of PNCDC:

Vince​: Ano yung mga fini-face na problem dito sa company?

Marlene​: Number 1 is maximizing productivity of the employees, because a lot of the

employees are aging na. We are managing eight corporations and oftentimes kunyari
the admin department handles accounting, purchasing, and personnel for the eight
corporations, parang ganun. They’re manageable but it’s just that you know sana
ideally… the idea is just to assign. Kunyari purchasing manager there or personnel
manager here. Hindi lang eh. It’s under one umbrella. Piedras Negras Construction
ganun. We’re using the people’s… Piedras Negras Construction to handle all the other
seven corporations diba. So uhm hindi sya problem but something na we’re doing
something about it. It’s really… like into succession planning. Identifying potential
people who will eventually manage the corporation ganun. Because yung age level is
mataas and then as far as operation is concerned, we have problem with… we’re
always losing drivers ganun. We’re always losing employees, skilled employees
because the construction now is on boom. So there’s no loyalty among people on that
level. For one thing they are not regular employees. They’re called project employees.
So project employees… they don’t have parang permanent tenure.We have regular
employees and project employees, and they’re only good for the duration of the project
itself. So like kunyari there’s no loyalty in the sense na if they find better opportunity
elsewhere, they leave the company and transfer. But as far as we are concerned, our
benefits are above industry standard kaya ano we pay them well, we pay overtime. So
walang problema. It’s just that you know we cannot avoid it. Drivers talaga ang
problema so far.
The following shows the transcribed phone interview, featuring follow-up questions
between Alexandra Cerezo, one of the reporters, and Mrs. Marlene Maristela, PNCDC
General Manager:

28
Alexandra: What can you say po with the lack of project employees that your company
is dealing with right now? How about the aging workforce?

Marlene: In general, yung drivers ang turnover nila is fast because the construction this
time of year is actually in full bloom. And the solution for that is really to hire, and to hire
is to advertise, through word of mouth ganon. That is the solution for that, but we’re
doing that. If that’s the solution that you would offer, we are already doing, you cannot
control when the construction really is in full bloom. Talagang even carpenters, lahat ng
mga skilled workers, talagang wala. And ano, cuz you’re mentioning about aging
employees, and yeah the company’s 25 years old and a lot of employees started from
the beginning with us so they’re aging, mga 50, magsisixty ganon, s what we’re doing is
uh we’re already ano training, even the owners, past 60, this generation.

A: Where do you usually recruit these truck drivers, do you like partner from truck driver
companies?
M: No, wala naming ganong agency na, basta talagang they apply, umiikot sila eh sa
mga ganon. Of course, TESDA, and we advertise them sa TESDA, sa Jobsite, sa mga
advertising agencies. Not only truck drivers, but other kinds of employees. But definitely,
they have to test their skills talaga as truck drivers. Also referrals ganon. Definitely
itetest muna naming yung skills before they get in. And very ano dapat the
qualifications, drug testing, we do that, oo.

A: Do you have a regular staff of employees for your projects?

M: Meron, we have regular employees who are drivers, kasi kunwari sa project, you
don’t hire them as regular employees kasi ano project employment talaga ang nature ng
construction. But the start and end dates of the contract, so when you’re done with that,
uh if you like the employees, you renew them and we assign them to other projects.
Ganon. So merong regular employees and merong project employees kami. We even
have regular employees who are heavy equipment operators, regular employees who

29
are truck drivers, and kunwari we have more projects than the number of employees so
we have to hire from outside of the regular plantilla ganon so project specific sila,
depending on the start and the ending of the contract naming.

A: Siguro po in one year, how many projects does PNCDC accept?

M: We cannot say that, kasi like ngayon,we have, simultaneous siguro mga 50+. And
kasi it is really marketing efforts, and di naman sa number of projects eh, it’s how big
the project is. Kunwari, What projects are 300 million, what projects are 500 million,
ganon, depende. Kaya we have 500 million projects kaya we don’t get madami, diba?
Oo.

A: Ano pong masasabi ninyo sa absenteeism rate ng employees in your company?

M: We have very strict policies on absenteeism. We have due process to get to get
memo . I have terminated several employees na frequently absent, siguro. Yan ang
masasabi ko, kasi if you have the skill, but absent ka ganon. Kasi the values, attitudes,
behaviors of the employees, if they are not congruent with our policies, with the valids of
the owners ganon, and then di siya pwedeng magtrabaho sa Piedras, which is really
ganon. We have very strict code of ethics, we implement that, oo.

A: What is the turnover rate of the country for the past year?
M: I cannot measure, uhm, wala masyado. Di talaga. Except for one that I terminated
eh.

A: So Miss, you rarely terminate employees?

M: Because our benefits are above bar naman compared sa ibang competitors, we offer
retirement packages, and we have HMO. Tapos meron silang mga incentives, tapos
merong mga yng sa, then pag Christmas, merong party, meron silang lunch out at the
end of the year.

A: How long do you fill out vacancy positions?

M: Meron kaming, what we do kasi, is kung pag mag-advertise ka, makakakuhaka

30
talaga, meron kaming nakastandby na mga applications also. If you call them up, and if
they are available, we let them in, ganon. So di siya tumatagal sa matagal nang walang
empleyado.

A: Siguro at most, what is your estimate, mga ilang weeks po?

M: 2 weeks ganon? Oo.

A: What’s your cost per hire po?

Ang cost ko lng is yung papamedical ko lng siya tapos cost of advertisement. So
wala talaga siyang ano, kung ano lang yung kanyang salary basta ganon, uhm uniforms
din. Ok ano ba yung cost per hire? Anong formula mo sa cost per hire? Why are you
asking, is that really sensible yang question na yan?

A: Uhm ano, it’s an HR Metric lang po kasi.

M: Oo, oo, kasi it doesn’t really qualify ngayon. Sometimes kasi yung mga metric metric
na yan, in the real world ha.

A: It’s additional question lang po, and need po kasi sa paper namin to include HR
Metrics for the HR practices.
M: Ah oo sa college kasi, may metrics kasi ganon. Pero in the real world, It doesn’t
really apply.Kasi in the real world, you need skills, experience, and personality, and we
take dapat depende sa qualifications, it pays sa qualifications, eh.

A: Do you conduct seminars/ talks in order for the employees to gain loyalty from the
company?
M: No, loyalty? Kasi ano, value-driven na pag sa hiring palang eh. And of course,
They’re guided kasi by the code of ethics, meron silang code of ethics, so, yung loyalty,
you gain loyalty as they stay with you because you compensate them well with the
benefits. So, walang talk on loyalty. We give ano, parang ang talks is more on related
sa trabaho. It’s not really in house, ganon, I pay outside consultants to improve certain
skills, like for example, let’s say accounting for non-accountants. in piedras, there are 8

31
 corporations, yung isa, how to import goods, I send 5 people there, kunwari project is
construction management, or uh safety, usually, ano, outsourced yun ganon, there are
other companies, even legitimate, accredited companies, that conduct such workshops,
and mas expertise nila, so I will not waste time to study it or not even ano, kasi specific
yung trabaho, we have, and they’re not hired as to conduct , ano, workshop. And I
manage strategic planning ganon. Strategic planning is really to set the company, kung
ano direction niya for the next 5 years. Does the employees know that, definitely, kung
ano yug loyalty nila, it’s not really a seminar on how to be loyal, you know, oo.

APPENDIX B: Notes from the Initial Interview with PNCDC General Manager, Mrs.
Marlene Maristela

The following shows the HR Management Report of PNCDC and the additional
interview questions emailed by the reporters to Mrs. Marlene Maristela:

PIEDRAS NEGRAS CONSTRUCTION AND DEVELOPMENT CORPORATION

HR Management Report

PROFILE AND​ ​DESCRIPTION OF THE COMPANY

In the highly competitive world of the construction and development industry, ​Piedras
Negras Construction and Development Corporation​ (PNCDC) has kept abreast with
the latest in technology and has maintained a high quality of output in all of its projects,
both completed and currently in progress.

Initially incorporated as a heavy equipment leasing company which eventually provided

General Construction services, ​PNCDC​, in a span of Twenty-Five (25) years, has
ventured into developing over 100++ projects ranging from world-class Golf Courses,

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Race Tracks, airport, Resort and Subdivision Projects. It has also developed and
enhanced its Engineering Division to meet the challenges of the construction industry.

PNCDC​ is backed by a pool of experienced, competent and highly –skilled

Management Team, Engineers, Tradesmen and Workers in its various projects.

PNCDC​, with its capability and strength, envisions to be a strong, reputable and
professional company that will responsibly address the needs of its clients, owners and
employees.

SCOPE OF SERVICES:

General Engineering and Construction

·​ ​Bulk Earthwork & Excavation Works
·​ ​Structural Excavation Works
·​ ​World Class Horse Racetracks
·​ ​Complete Golf Course Development
·​ ​Airport Runway Construction & Repair
·​ ​World-Class Horse Racetrack Construction
·​ ​Major Site & Subdivision Development
·​ ​Mass Housing to High-End Residential Unit Construction
·​ ​Clubhouse Construction
·​ ​Road Construction
·​ ​Heavy Equipment & Trucking Services
·​ ​Drainage & Flood Control System
·​ ​Water and Fire Control System
·​ ​Sewerage Piping System
·​ ​Reservoir and Electrical Water Tanks
·​ ​Offshore Berthing Facilities
·​ ​Demolition Works

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VISION STATEMENT:

To be renowned as a strong, reputable and professional general contractor that

responsibly addresses the needs of our clients, owners and employees

STRONG - Able to:

o​ ​Provide our own resources
o​ ​Be financially sound
o​ ​Acquire and develop pool of technical and managerial experts
o​ ​Be able to protect our shareholder’s investments

REPUTABLE - Able to:

o​ ​Complete projects according to client’s specifications and deliver on time
o​ ​Maintain good credit standing from financial institutions
o​ ​Maintain mutually beneficial relationship with our contractors and suppliers.

PROFESSIONAL - Able to

o​ ​Manage our business effectively and efficiently by having strong

operational and management systems
o​ ​Practice stable and sensible management of funds
o​ ​Maintain high regard for the observance of laws of the country
o​ ​Give proper regard to health, safety and environment.

MISSION STATEMENT:

PNCDC is committed to offer our clients with consistent high quality and good
value construction and heavy equipment leasing services.

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1​. How do you measure the effectiveness of your HR department to the
organization’s
overall operation? ​( same answer as number 5) HR PRACTICE
2. ​What is the manpower complement of the firm? OP
Number of Regular Staff: 72
Number of Project Employees: 37
3. ​What are the different positions in the organization? OP
EXCOM/Management​ (Chairman & President, VP Operations, VP Purchasing, VP
Engineering, General Manager)
Department Heads​ (Asst. General Manager, Accounting Manager, Purchasing
Manager, Personnel Manager, VP Engineering, Project Operations Director,
Equipment and Maintenance Head, Project Manager)
Supervisory/Team Leaders​ (Admin Officer, Purchasing Officer, Billings Officer,
Safety & Documentation Officer, Site Engineers, Officer Engineers, Surveyor, Head-
Hauling)
Rank and File​ ( Operators, Drivers, Helper Mechanics Lube man, Utility Personnel,
Welder, Checker)

4. ​How do you see your company in the next 2-3 years?

STILL, one of the most stable in the industry
In the next 5-10 years?​ Seeing the next line or generation of owners’ children actively
managing the corporation.(preparation to higher studies and on-site employment)

5. ​What HR strategies will prepare the company for the future? HR PRACTICE

ON ORGANIZATION:
1. Achieve competence in delivering, in the most cost-effective manner, the
production process at the required quality, specification and delivery time by the
client.

35
 2. Develop and improve on current technologies to make production more efficient
and more flexible to respond better and more quickly to customer’s needs and
requirements.
3. Undertake continuing assessment of clients’ needs by going direct to clients.
4. Hire Professional Managers to assist us in the implementation of strategies and
plans.
5. Make adaptation in the organizational component consistent with where the
company is going along, and also where everyone in the organization knows
about the

a.​ ​company’s vision and how they can contribute to its attainment.
F. ​Implement effective ​Code of Discipline system​- in writing, part of Employee
orientation

We will continually develop and maintain plans to consider strategic needs of the
organization​:
a.​ ​Recruit new people,
b.​ ​Application of Data Technology to cater to the millennials’ skills
c. deploy people more effectively in the organization,
d. release employees from the organization,
e. outsource project employees and
f. use subcontractors as part of workforce.
a. Subcontract agreement for sub-contractors to ensure that their employees get paid
well and accorded benefits by their employers.

6.​ ​Who are your current competitors?​ OP

At least companies or contractors with at least 25 years’ experience in the industry and
possessing at least Class A license from PCAB (Philippine Contractor’s Accreditation
Board) servicing major site or land development requirements of Blue Chips or Class A
developers in the industry like Ayala Land Inc., Makati development Corporation, DMCI,
Mega world, Filinvest, etc. -as these are some of the company’s clients.

36
7.​ ​What is the competitive advantage of your HR unit over your
competitors’? (same answer as no. 22) hr practice

We offer complete Package of Employees benefits such as:

a.​ ​Offer​ Service Incentive Leaves
Day 1 of regularization up to 5 years of service​- 10 day-service incentive leave (5
holiday and 5 sick leave benefits) as compared to the legislated five-day service
incentive leave.
5 years and 1 day in service up to 10 years in service – 14- day service
incentive leave ( 7-day holiday and 7 -day sick leave).
Paternity or Maternity leaves
b. Special contribution for death of immediate family
c. Employee Loans
d. Birthday Leave
e. Service Awards​ ( 10 years in service, 15, etc.)
f. ​Introduction of ​Retirement Package ​for all employees working at least 5 years in
March 2018.
(REPUBLIC ACT NO. 7641, December 9, 1992​, R
​ ETIREMENT PAY LAW​,
AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES,
BY PROVIDING FOR RETIREMENT PAY TO QUALIFIED PRIVATE SECTOR
EMPLOYEES IN THE ABSENCE OF ANY RETIREMENT PLAN IN THE
ESTABLISHMENT)
h. ​Overtime Payment for all employees except for the following staff who are not
entitled to overtime pay:
1. Managers and/or Supervisors
2. Officers/ members of the managerial staff management staff) wherein:
a. the primary duty consists of the performance of tasks directly related to the
management policies of the company;
b. a staff who customarily and regularly exercise discretion and independent judgment;

37
 c. One who regularly and directly assists a managerial employee whose
primary duty consists of the management of the department or division of your
company;
d. Under general supervision, one who executes work along specialized and /or
technical lines requiring special training, experience or knowledge;
e. Under general supervision, one who executes special assignments and
tasks.
i.​ ​Provide ​employee support services:
a. ​Housing units for all employees assigned at project site,
water and electricity shouldered
b.​ ​Uniforms for all staff
c. ​PPE or Personal Protective Equipment for all technical staff
during project operations
d.​ ​Service Vehicles for Key staff
e.​ ​Legal assistance for work-related cases filed against employees
f.​ ​Meal allowances for selected employees
g.​ ​Proper work environment
j.​ ​Promote ​internal communication:
a.​ ​PNCDC has its own main domain for email
b.​ ​Inter-office memos
c.​ ​Provision of cellular phone units for faster communications
d.​ ​Provision of landline and fax units to project sites
e. ​Provision of USB and portable broadband/internet lines and
personal lap top units
k.​ ​Promote health and safety practices​:
a. ​HMO- COCOLIFE card issued for all regular employees
and dependents of Owners.
b. ​Company shoulders medical needs of project employees
for any accidents that transpire at project site
c. ​Special contribution to project employees during times of
personal tragedies like death in the family or hospitalization

38
8.​ ​How will you invest for a better HR unit than them?​ Hr discu
Send key managers to graduate schools (AIM or Ateneo Business school)
9. ​How do you keep your employees motivated? We develop and maintain
employee relations activities like Annual Christmas Party and Summer Outing. We offer
special cash incentives for deserving employees.
10.​ ​How do you retain your current employees and how can you reinvest in
them​? ( see number 8)
11.​ ​Which department of the organization make up the largest proportion of
the employees?​ Maintenance Department
12.​ ​Would you consider your HR management as strategic​? Yes
13.​ ​Who conducts the strategic planning​? General Manager
14.​ ​How much is the cost spent per hire? ​Minimal for medical evaluation and
advertisement for technical.
15.​ ​What’s the attrition rate of the company​? low
16.​ ​What are the challenges that the company is facing at present? Aging
employees
17.​ ​Has the company ever received bad feedback from customers​? No
18.​ ​From former employees​? No
19.​ ​How does the company deal with it​? N/A

Highlights of the company’s ​recruitment, training, compensation, performance

management, labor relations, and separation

ON RECRUITMENT:
1. ​Do you conduct forecasts for your HR planning​? NO ​What kind of forecasts​?
N/A
2. ​Which job position is frequently vacant​? drivers
3. ​How do you attract talent​? Via​ ​Print Ads, Job Street, Jobs DB, TESDA, FB
4. ​What factors determine your HR recruitment process​? Load of construction
projects

39
5. ​What are your personnel policies that determine the nature of vacancies​?
Training of understudies and inter-departmental training to be able to multi-task
6. Where do you acquire sources for recruitment?
7. What are the major criteria that your recruiters place on applicants?

SELECTION
1.​ ​ What are your Selection methods?
2.​ ​What are your evaluation standards for choosing a Selection method? Job specific
standards
3.​ ​ Do you conduct interviews for all job applicants? Yes
4.​ ​What are your standards in an interview? Competencies and skills measurement
5.​ ​Do you conduct physical ability tests? ​Yes, we call them trade test​. If so, what are
they?

TRAINING:
1. We require attendance to ​Skills Development and Competency Training
Programs for employees such as ​Trade Tests for skilled workers like heavy
equipment operators (bulldozer, wheel loaders, excavators, etc.) and drivers (dump
trucks), to achieve NATIONAL CERTIFICATE II, issued by TESDA (Technical
Education and Skills Development Authority) for completing the competency
requirements under the Philippine TVET Competency Assessment ( ​T​echnical
V​ocational ​E​ducation & ​T​raining).
2. We likewise require attendance to ​Basic Occupation Safety and Health (
BOSH) and Construction Occupational Safety and Health (COSH) training
programs​ by key technical officers, with number of technical staff trained to date

13. ​How often do you conduct trainings for your current employees​? As needed,
yearly at most.
14. ​How do you measure the effectiveness of your training programs​? Actual or
on-site performance

40
15. ​What specific stages do you consider in creating a training program​?
Categorization according to technical, operations and administration
16. ​Who approves or rejects training program proposals​? Top Management
17. ​Who conducts the training for new employees​? Department Heads; HR- for
Basic orientation, Employee Polies and Procedures and Code of Conduct
18. ​How do you assess the training needs of your current and new employees​?
Employee feedback and evaluation, actual on job evaluation of performance against
standards
19. ​How do you ensure employee motivation for learning​? See replies on benefits
20. ​How important is feedback for employees​? Very important
21. What are your current training methods and how do you select among them? (For
current and new employees)- already answered

COMPENSATION PROGRAM:
1. The ​compensation program​-

a. ​All existing salaries of both regular and project employees are reviewed yearly, and
corresponding salary adjustment and alignment are being done to conform to all the
legislated minimum wage, wage procedures, ECOLA, etc.
b. ​PNCDC salaries are aligned to the industry standard salaries and wages for the
personnel working in the construction industry.
c. ​Managerial and technical persons are sufficient for the size of the organization and
projects being handled by the company are constantly monitored and adjusted.
d. ​Skills inventory of present manpower complement are regularly evaluated and
conducted.
e. ​Regular and continuous review of the company’s compensation and benefits plan
are being undertaken with the end of making it competitive vis-à-vis the industry
standards and of making it more attractive for the existing employees.

41
22. ​What kind of benefits do you provide to your employees​? (same answer as
number 7)
23. ​Do you provide additional incentives/ rewards to employees​? YES
​If so, when do you usually give these​? End of the year
24. ​How do you develop the pay structure of your employees​?
We implement Salaries at par , if not above with industry standards, and ​Minimum
wage for all entry​ level positions.
​Is it job-based or skill-based​? both
25. ​Are the employees properly compensated​? Yes, in fact, salaries are above
industry standard
26. ​Do your employees regularly receive their pay on time​? YES
27. ​What constitutes the pay of your employees? (Salaries, bonuses, etc.)
Salaries, 13​th​ month pay, bonuses, allowances, and other cash and non-monetary
incentives
28. ​Are there any problems that you have encountered/ are encountering in this
HR aspect or practice​? None

PERFORMANCE MANAGEMENT:

Can you tell us about the current performance management system being applied
in
your company? What are the processes involved?
Job Performance Review and Evaluation Program are being conducted yearly.
Likewise, the company continually conducts ​coaching and feedback sessions of the
respective managers or supervisors with their staff.

How do you manage and develop the performance management system of the
company?
Employees are continually involved in the formulation of the goals, to evaluate quality
improvements that need to be done for both the individual and the company.

42
What approaches do you use in your performance management system?
S​uggestion system is encouraged to achieve employee involvement in improving the
company’s performance. The ​Employee Satisfaction Survey is used to gain
employee perception of how the company is managing the people and their resources.
It is also as an effective tool to enforce corrective actions on part of management, with
the end in view of improving labor relations between management and staff.

What are the criteria that you use in your performance management system?
1.)​ ​Quality output – ​Work is accurate, error free and on time;
2.) ​Initiative, responsibility and accountability – ​Employee
takes personal responsibility for her work and does her work
without being reminded by her superior;
3.) ​Resourcefulness and problem solving-ability - When a
problem or need arises, and it is within the employee’s capacity
to solve or meet it. If she does not know how to do something
but she has to do it, she goes out of her way to learn;
4.) ​Trustworthiness and loyalty – ​She can be trusted with
money and confidential matters, and she always considers the
well-being of the company and its people as a team;
5.) ​Customer service – ​Clients are happy with her work and the
way she deals with them. Clients give the company positive
feedback and/or more referrals because of her good work and
attitude.
6.) ​Professionalism – ​She ​is a ​model employee. ​She looks,
acts and speaks toward clients and co-workers in a way that is
appropriate to her position. She is organized in her work. She
maintains a neat work area​.
7.) ​Positive attitude – ​She works with enthusiasm, encourages
others, and practices the philosophy of being “of greater service”
in the workplace toward co-workers and clients;

43
 8.) ​Innovation and Responsible Stewardship – She makes
improvements in office procedures that have resulted in better
and faster work at lesser expense. She makes wise use of time,
property, money and resources.
9.) ​Savings Consciousness ​– She is conscious about using
company resources properly and effectively;
10.)​ ​Leadership Abilities ​– She practices and promotes all
of the above qualities in the workplace.

33. ​How do you measure these criteria?​ Bi-annual evaluation

34. ​Are there any problems in the company’s current performance management
system​? NONE

EMPLOYEE SEPARATION:
35. ​How often does your company fire employees​? Not so often ​How about
voluntary employee resignation​? Quite a few
36. How do you manage and resolve involuntary turnovers? N/A
37. ​How do you manage and resolve voluntary employee turnovers / resignation?
Receipt of resignation letter 30 days before due date, exit clearances- quit claim and
waivers, exit interview
38. ​What are the usual reasons for voluntary employee resignation​? Retirement
39. ​Does your company hold job rotations​? yes

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APPENDIX C: Piedras Negras Construction and Development Corporation
(PNCDC) Mayor’s/Business Permit

45
46