Tab 1

Main Topics and Subtopics in the Source Material

The provided source material, "GROUP 6_HRM MANUSCRIPT.pdf", focuses on Employee
Benefits and Pre-Retirement Planning. Here's a breakdown:

I. Theoretical Foundations

● Expectancy Theory: Explains how employee behavior is influenced by expected

rewards.
○ Employees are more motivated when they believe their effort will lead to desired
outcomes, such as recognition.
● Social Exchange Theory: Illustrates the reciprocal exchange of resources, time, and
effort in relationships.
○ Organizations can leverage benefits in exchange for employee attraction,
retention, and engagement.
● Maslow's Hierarchy of Needs: Proposes that people are driven by a hierarchy of
needs.
○ Employee benefits can address various levels in this hierarchy, for example,
health insurance satisfying physiological needs (health).

II. Legally Required Benefits in the Philippines

● Social Security System (SSS): A social insurance program for private-sector workers.
○ Provides financial support in case of disability, sickness, maternity, old age, and
death.
● Government Service Insurance System (GSIS): Similar to SSS but covers
government employees.
○ Offers life insurance, separation/retirement benefits, and disability benefits.
● Home Development Mutual Fund (PagIBIG): A national savings program and
affordable housing financier.
○ Mandatory for SSS and GSIS members.
● Philippine Health Insurance Corporation (PhilHealth): Provides health insurance
coverage for all Filipinos.
○ Manages contributions, funds, and subsidies to members.
● 13th-Month Pay: Required for rank-and-file employees who have worked for at least
one month in a calendar year.
○ Mandated to help combat inflation, particularly during the Christmas season.

III. Employee Benefits as Strategic Tools

● Talent Management Strategy: The process of attracting, retaining, and developing

employees to meet organizational objectives.
○ Benefits are a key component of this strategy.
● Employee Rewards: Systems designed to boost morale and productivity.
○ Types of rewards include commissions, bonuses, profit-sharing, and stock
options.
○ Benefits can attract high-quality employees, reduce turnover, and increase
motivation.
IV. Trends and Types of Employee Benefits

● Trends: Growth of flexible plans and a shift towards more taxable benefits.
● Popular Benefits: Health insurance, dental insurance, paid time off, and retirement
plans.
● Categories of Benefits:
○ Social Insurance
○ Private Group Insurance
○ Retirement Plans
○ Pay for Time Not Worked (e.g., vacation, sick leave)
○ Family-Friendly Policies (e.g., parental leave)

V. Retirement Planning

● Defined Benefit Plans: Promise a specific retirement benefit based on years of service,
age, and earnings.
○ Examples: Flat benefit, career average earnings, final earnings.
● Defined Contribution Plans: Employees contribute a fixed amount or percentage of
their paychecks to a retirement account.
○ Examples: 401(k), Thrift Savings Plan (TSP), Individual Retirement Arrangement
(IRA), 403(b), 457(b).
● Cash Balance Plans: Employees receive a set percentage of their annual income plus
interest.
● Pre-Retirement Preparation: Steps to ensure financial security, such as starting early,
understanding needs, and diversifying investments.

VI. Managing Benefits: Employer Perspectives

● Objectives and Strategies: Balancing employee expectations with cost control.

● Cost Control: Focusing on high-cost areas and understanding discretion in spending.
● Health Maintenance Organization (HMO): Provides prepaid healthcare; employees
must use the HMO's providers.
● Preferred Provider Organization (PPO): A network of healthcare providers offering
discounted services.
● Employee Wellness Programs: Preventive programs aimed at improving employee
health and reducing healthcare costs.
○ Target health risks such as high blood pressure, high cholesterol, smoking, and
obesity.

This outline provides a comprehensive summary of the main topics and subtopics covered
within "GROUP 6_HRM MANUSCRIPT.pdf".
Tab 2
K-Pop Case Scenarios Illustrating Employee Benefits
● I. Theoretical Foundations: These theories provide a basis for understanding how
employee benefits influence behavior and workplace dynamics.
SAMPLE: The K-Pop group "Diamond Dolls" just signed with a new agency that
promised them better resources and support for their music careers. The members are
initially hesitant, having experienced broken promises from previous agencies. However,
after seeing the agency follow through on initial commitments like upgraded practice
facilities and personalized vocal coaches, the "Diamond Dolls" become more motivated
and dedicated.
○ Expectancy Theory: This theory suggests that the "Diamond Dolls" were
motivated because they believed their effort and performance would be rewarded
with desired outcomes, like better resources and career advancement. This
newfound trust in their agency fosters a more positive and productive work
environment.
○ Social Exchange Theory: The relationship between the agency and the
"Diamond Dolls" can be viewed as an exchange. The agency invests resources
and support, and in return, the group is expected to deliver strong performances
and maintain a positive image. This reciprocal relationship, built on trust and
mutual benefit, contributes to the success of both parties.
○ Maslow's Hierarchy of Needs: The agency addresses the group's basic needs
(physiological and safety) through providing comfortable accommodations and a
safe working environment. Furthermore, by offering opportunities for creative
expression and recognition through music, the agency also helps fulfill their
higher-level needs for esteem and self-actualization.
● II. Legally Required Benefits in the Philippines: These are the mandatory benefits
that employers in the Philippines must provide to their employees.
SAMPLE: "Starlight Five," a rising K-Pop group based in the Philippines, is reviewing
their contracts with their agency. The members, now more aware of their rights as
employees, want to ensure their contracts comply with Philippine labor laws.
○ Social Security System (SSS): The members of "Starlight Five" check to see if
their agency is making proper contributions to the SSS, which would provide
them with financial security in case of unexpected events like sickness or
disability. This security net helps them feel more confident and protected as they
pursue their demanding careers.
○ Government Service Insurance System (GSIS): Since "Starlight Five" works in
the private sector, GSIS doesn't apply to them. However, they understand its
importance for government employees.
○ Home Development Mutual Fund (Pag-IBIG): The members verify that their
agency is also contributing to Pag-IBIG, which helps them save for the future and
potentially purchase affordable housing. Having a stable place to live is
especially crucial given the unpredictable nature of the entertainment industry.
○ Philippine Health Insurance Corporation (PhilHealth): "Starlight Five" makes
sure they have PhilHealth coverage, which is essential for accessing affordable
healthcare services in the Philippines. They know that staying healthy is crucial
for maintaining their performance schedule and meeting their career goals.
○ 13th-Month Pay: The group confirms that their contracts guarantee the 13th-
month pay, a welcome bonus that helps with their financial planning, especially
 during the holiday season. This additional financial support allows them to enjoy
the festive season and potentially invest in their personal development.
● III. Employee Benefits as Strategic Tools: Companies can utilize benefits strategically
to attract, retain, and motivate employees.
SAMPLE: "Galaxy Girls," a popular K-Pop group, is deciding between renewing their
contract with their current agency or signing with a new one that offers a more attractive
benefits package.
○ Talent Management Strategy: "Galaxy Girls" recognize that a strong benefits
package can be a sign of an agency that values its talent and invests in their
well-being. This, in turn, can enhance their reputation and attract other talented
individuals in the future.
○ Employee Rewards: The new agency proposes a comprehensive rewards
system, including performance-based bonuses and opportunities for profit-
sharing from successful projects. This motivates "Galaxy Girls" to strive for
greater success, knowing they will be directly rewarded for their contributions.
● IV. Trends and Types of Employee Benefits: This section explores current trends in
employee benefits and various types of benefits offered.
SAMPLE: "Neon Dreams," a K-Pop group known for their innovative concepts, is
interested in working with an agency that offers unique and flexible benefits that cater to
their diverse needs.
○ Trends: "Neon Dreams" learns that flexible benefit plans are becoming
increasingly popular, allowing employees to customize their benefits to meet their
individual needs and preferences. This trend towards personalization aligns with
their desire for a more individualized approach to their careers.
○ Popular Benefits: The group considers traditional benefits like health and dental
insurance but is also interested in exploring options for mental health support and
financial planning assistance. They recognize that holistic well-being is crucial for
sustaining a long and successful career in the demanding K-Pop industry.
○ Categories of Benefits: "Neon Dreams" investigates the different categories of
benefits, such as social insurance, private group insurance, retirement plans,
paid time off, and family-friendly policies. Understanding these categories helps
them make informed decisions when negotiating with potential agencies.
● V. Retirement Planning: Planning for financial security after a career in entertainment is
crucial.
SAMPLE: The members of "Velvet Roses," a veteran K-Pop group approaching the later
stages of their career, are prioritizing retirement planning to ensure a comfortable future
after their time in the spotlight.
○ Defined Benefit Plans: The group is intrigued by the idea of a defined benefit
plan, which promises a specific retirement benefit based on their years of service
and earnings. This offers a sense of security and predictability, allowing them to
better plan their future finances.
○ Defined Contribution Plans: They also explore defined contribution plans like
401(k)s, which allow them to contribute a portion of their income to a retirement
account, potentially growing their savings over time. This option provides them
with more control over their investments and potential returns.
○ Cash Balance Plans: They learn about cash balance plans, which combine
elements of both defined benefit and defined contribution plans. This hybrid
approach offers them a balance of guaranteed benefits and investment growth
potential.
○ Pre-Retirement Preparation: "Velvet Roses" begins taking active steps for pre-
retirement preparation, such as seeking financial advice, diversifying their
 investments, and exploring potential post-retirement career options. These
proactive measures help them transition smoothly into the next chapter of their
lives with financial peace of mind.
● VI. Managing Benefits: Employer Perspectives: This section highlights the employer's
perspective on managing employee benefits efficiently and effectively.
SAMPLE: "Aurora," a K-Pop agency, is reviewing its employee benefits program, aiming
to balance the needs of their artists with cost control measures.
○ Objectives and Strategies: "Aurora" seeks to create a benefits program that
attracts and retains top talent while remaining financially sustainable. This
requires careful planning and a strategic approach to benefit selection and
management.
○ Cost Control: The agency explores various cost control measures, such as
negotiating favorable rates with insurance providers and promoting preventative
healthcare through wellness programs. By managing costs effectively, they can
continue to offer competitive benefits to their artists.
○ Health Maintenance Organization (HMO): "Aurora" considers offering an HMO
option, which provides prepaid healthcare services through a network of
providers. This can be a cost-effective solution, especially for routine healthcare
needs.
○ Preferred Provider Organization (PPO): They also evaluate the benefits of a
PPO, which offers a wider network of providers and greater flexibility for
employees but often comes at a higher cost. They weigh the trade-offs between
cost and flexibility to determine the best option for their artists.
○ Employee Wellness Programs: "Aurora" invests in employee wellness
programs that encourage healthy habits, such as fitness challenges, stress
management workshops, and nutritional counseling. These programs aim to
improve the overall health and well-being of their artists while potentially reducing
long-term healthcare costs.