CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

The following literature and studies are found to be related and with significant to

the present study.

RELATED LITERATURE

Foreign Literature

Strembler M. T. et al identify hoe competencies is perceive by the employees.

Employees believe that the competencies give clear messages to employees about the

behaviors required by their business. They have conflicting views about competencies.

On the other hand Strembler et.al discusses the use of competencies by the

employer. Many employers are faced with the challenge of deciding the purpose for

which competencies are best used. They are also required to provide adequate support

to individuals for implementing them successfully. Employers believe and are spending

vast amounts of money and time introducing competencies.

As noted by Porter,(2002) in order to determine whether higher education and

the rates of return on investment o both the individual and the society. There is

considerable support for the motion that the rate of return on investment on higher

education is significant, given the earnings disparity that exists between those who earn
a bachelor’s degree and those who do not, the individual rate of return on investment in

higher education is significantly high to warrant the cost.

As the company seeks to hire new employees, managers tend to search for

those competent and capable in helping them out to achieve their organizational goals.

One of their ways is Reference checking, as Robert Hosking (2010) defined as one of

the most critical stages in hiring process. The comments given by your contact can

determine whether you’re extended a job offer or you’re out of the running.

Moreover, according Redford as included in the companies’ success most

companies staff their offices with employed selected of the basis of their competitive

examination. Intelligence tests are perhaps, the psychological technique that is most

often met within everyday life. “Test” in fact an unfortunate term, as it implies successor

failure. Most psychological measures are simply intended to give an accurate picture of

an individual or group, compared to other on characteristics that likely to be related ad

relatively permanent.

As society opens up the new technology to help business firm stored their

company’s data as well as making their workers easily completed the task in record

keeping and other related activities that needed a technology.

Mac Margolis (2010) pointed out that today new technologies and management

methods constantly tested and toppled in the crucible of the workplace, business have

developed learning needs of their own and that some skills cannot be bought or

outsourced.
 In line with this McShare and Von Glinon(2008) explained the so called “virtual

work”, whereby employees use information technology to perform their jobs away from

the traditional physical workplace. It also includes employees connected to the office

while on the road or at client’s office. Some research suggests that virtual work,

particularly telecommuting potentially reduces employee stress by offering better work.

Life balances and dramatically reducing time lost through commuting to the office others

point out that virtual work reduces the cost of office space and reduces traffic

congestion. Virtual work also functions better in the organization that evaluate

employees by their performance outcomes rather than by ”face time”.

Skills, knowledge, aptitudes, values, drives and other underlying personal

characteristics that lend to superior performance are typically bunched together into the

concept of competencies. Most large organizations spend a lot of money identifying key

competencies but some competencies are described so broadly that they offer little

guidance for hiring and training people (McShare and Von Glinon, 2008).

Bassi and McMuirrer (2004), explained that managers are always claiming that

people is important asset. But deep down, they can‘t shake the feeling that employees

are costs- big costs. Some studies show that treating employees like the assets they

are- by investing in their development- boat returns over the long run.

Local Literature

Moreover, Dy-Liacco(2006) stressed that the learning and development is indeed

a lifelong process and we’ve often heard that the education does not end in the
classroom. Years after formal education, people in the workplace are still clamoring for

learning and growth. Staff ,individual contributors and leaders alike need the stimulation

offered by development opportunities in the workplace so that they do not lose their

motivation, become complacent or seek more interesting challenges outside the

organization. Development is not only a retention tool, but also one that improves the

performance of people and in turn of the organization.

To improve the quality of the business graduates Edralin cited four ways to

achieve it (1)Strengthens teachers training increasing financial allocation and

conducting a continuing faculty development program which include not only in- service

training but participating in national and international graduate/ post graduate programs,

conferences; (2)Increase faculty exposure on actual business operation through

provisions of consultancy for senior faculty and on-the-job training for junior faculty;

(3)Provide adequate financial and deloading incentives for more faculty to get involved

in reach. (4)Monitor and evaluate regularly through self-evaluation and external

accreditation of reputable organizations.

Getting a job is the most important selling you will ever do. Many young men and

women who make good scholastic records in school or college become discouraged

after being graduated because of their inability to secure jobs.

RELATED STUDIES

Foreign Studies

Big companies are setting up university campuses all over the world to help

produce the kinds of employees they most need (Margolis, 2010). Educational

institutions are preparing college graduates to perform well in the workplace using their

acquired knowledge from school and their own skills and capability which is necessary

to compete in local and international workplace.

In line with this, U.S Department of Labor and Education formed the Secretary’s

Commission on Achieving Necessary Skills (SCANS) study the kind of competencies

and skills that workers must have to succeed in today’s workplace. What work Requires

of Schools: A SCANS Report for America (2000). Here are some pointers of SCANS’s

Five Competencies. (1) Resources-identifies organizes plans and allocates resources.

(2) Interpersonal: Work with others (3) Information-acquires and evaluates information

(4) Basic skills- reads, writes, performs arithmetic and mathematical operations, listens

and speaks.(5) Technology- works with a variety of technologies.

On the other hand, Malik(2006) stress that it hardly needs to be stressed that the

utmost care most be taken when appointing people to key jobs and in particular to the

executive body. Personal decisions are the ultimate control of an organization.

Everything stands and falls with this.

Also Mc Share et.al,(2005) identifies the following factors managers should

consider in selecting applicants. These are the abilities, skills, motivation, future
relationships, legal position, values and interest. To survive, the organization needs to

hire well-qualified, motivated employees.

According to Charles W.L.Hill (2009). A large and expanding body of academe

research suggests that a strong fit between human resources practices and strategy is

required for high profitability. That superior performance requires not only the right

strategy, but the strategy must also be supported by the right organization architecture.

Those people must be trained appropriately so that their skills sets required performing

jobs effectively, and so that they behave in a manner that is congruent with the desired

culture of the firm. Their compensation packages must create incentives for them to

take actions that are consistent with the Strategy of the firm, and the performance

appraisal systems that the firm uses to measure the behavior they want to encounter.

Leigh Buchanan (2004), Company leaders won’t be surprised that the employee

engagement- the extent to which workers commit something or someone in their

organizations-influences performance and retention. But they may be surprised by how

much engagement matters. Increased commitment can lead to a 57% improvement in

discretionary effort- that is employees’ willingness to exceed duty’s call. The great effort

produces, on average 20% of individual performance improvement and an 87%

reduction in the desire to pull up stakes. According to the Corporate Leadership Council,

this surveyed more than 50,000 employees in more than 59 organizations worldwide.

The CLC divide engagement into two forms. Rational commitment-results hen a job

serves employees financial, developmental, or professional self- interest. The second

one is the Emotional commitment- which has four times the power to affect performance
as it more pragmatic counterpart, arises hen worker value, enjoy, and believe in what

they do

On the other hand, Hodges and Burchell conducted a survey (2003) regarding

employers’ views of how well business graduates are prepared for the workplace. That

graduate employees may need to have a greater understanding and a focus on the

commercial realities of the modern workplace. Such realities include operating in a

global rapidly changing and highly competitive business environment, that requires both

attention to detail and effective communication skills with a need to address client needs

(whether this is through quality of service, quality of product, handling of complaints, or

in the resolution of problems).Most graduates are extremely confident and not

interested in repetitive tasks. Some have high expectations of their self-worth and

usually not backed up b the reality.

Seven Behaviors for Transformation have been identified by Kaplan and Norton

(2004), these are all new strategies require employees to make, and leaders to identify

and foster some specific changes in behavior. For better understanding they simplified it

into two categories in maximizing the contributions of their people to the execution of

their new strategies based on the research they have conducted. (1) Value creations:

Behaviors that support value creation as those that strategy increase focus on

customer, innovation and results. (2) Strategy execution: Behaviors that support

strategy execution which are those that increase employees understanding of the

company’s mission, vision and values, accountability, communications and teamwork.

Local Studies

Edralin reported on her study that competitive advantage of nations is rooted on

the quality of its workforce. That in order to keep pace with the demands of global

competitiveness, higher education in the Philippines is now operating both at the

domestic and global markets to compete with other provider around the world.

She assumed the predictors of the outlook of business course in the next 5-10

years in the Philippines. These factors are (1) market demand for business graduates-

aggregate of the demands of all potential customers for the graduates over a specific

period in a specific industry sector; (2) labor supply of business graduate- availability of

suitable human resources in a particular labor market; (3) degree of competition in the

industry-extent of rivalry of firms to protect their interests; (4) compensation package

offered by the companies – sum of direct benefits and indirect benefits that an

employee receives from an employer; (5) quality of teachers- outstanding teaching and

research competence of faculty; (6) affordability of tuition and fees- reasonable price

charged by the school for the tuition and fees of students; (7) relevance of school

curriculum- significance and responsiveness of the course s offered by the schools; and

(8) performance o graduates in the workplace- work performance of graduates exceeds

expectation of graduates.

Learning has to targets for success in the job(Dy-Liaco,2009). For example

leadership development has the greatest impact when it comes and developing

strengths and needs. Targeting learning needs begins with an assessment of the

organization’s current of future needs. The success profiles are the knowledge

behaviors, personalities and motivations is require for success in a particular job,

success profile need to be aligned with a business needs. An assessment of the

organizations needs ensure your investment in people development that should be

aligned to long term strategic business goals.