129 International Peer Reviewed Journal People Management Practices and Organizational - Success Indicators of Family-Owned Higher Education Institutions (FHEIs) in the Second District of Laguna: Basis for Model Development MARICRIS GLODO-UNICO http://orcid.org 0000-0002-8837-0764 krysunico.pm@gmail.com Laguna College of Business and Arts Calamba City, Philippines ABSTRACT Family-owned higher education institutions (FHEIs) strive to attract and retain well- equipped and engaged employees. This undertaking was conducted to explore the FHEIs people management practices and organizational-success indicators. To design the people management model, the study assessed the people management practices, job satisfaction, and the work commitment of teaching and non-teaching staff. The study used the combined quantitative and qualitative approaches. The use of questionnaires and interview was systematically combined to generate data needed. The study revealed that the people management practices as assessed by the department heads and teaching and non-teaching staff were moderately effective. There were numerous issues and challenges identified, and the actions taken were also presented. The teaching and non-teaching staff were satisfied with their job and moderately committed to their work. The FHEIs HR professionals should start taking a strategic role to help FHEIs respond effectively to the challenges and issues of contemporary educational institution. Vol. 28 · March 2017 Print ISSN 2012-3981 • Online ISSN 2244-0445 DOI: https://doi.org/10.7719/jpair.v28i1.505 Journal Impact: H Index = 3 from Publish or Perish JPAIR Multidisciplinary Research is produced by PAIR, an ISO 9001:2008 QMS certified by AJA Registrars, Inc. 130 JPAIR Multidisciplinary Research Keywords— People management, family-owned higher education institutions, organizational success indicators, job satisfaction, work commitment, issues and challenges, Philippines INTRODUCTION Today’s organization is people-intensive enterprise. People are vital among the other resources to the achievement of the organization’s goals and objectives, hence, people management is important. Considering the competitive world of business faced with rapid change, organizations need to design a more effective approach in managing human resources. The studies presented by Bautista (2013), Encabo, Maningas, and Revilla (2015), Kramar, (2014), Guest (2010), Alfes, Shantz,  Soane and Truss (2013), and Kehoe and Wright (2013) which focused on the implementation of HRM practices such as recruitment and selection, training and development, compensation and benefits, career management and performance management in different organizations, guided the researcher in this study. Likewise, the study also cited the literatures on the role of strategic HRM in an organization and those relating to job satisfaction, work commitment, and understanding individuals (Alfes, Delbridge, Shantz,  Soane & Truss, 2013; Arrowsmith  &  Parker, 2013; Guest, 2010; Kehoe & Wright, 2013; Chen, Chuanga,  Chuang, 2013; Mitchell, Obeidat, 2013; Liden, Wayne & Zhong, 2015; Barrick, Courtright, Smith, Thurgood, 2015; Kim, Park & Shaw, 2013; Constanti, Theocharous, & Zopiatis, 2014). A mark of family-owned institution is that they possess distinct performance capacities sourced from their ability to create powerful and unique cultures thereby giving them a competitive advantage when it comes to their stakeholders.  However, also there are challenges and risks that often derail them. Thus, they need to overcome these to realize their potential. The challenges faced by global organizations are important dimensions of human resource management (HRM), the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. Many companies refer to HRM as involving “people practices”. Important HRM practices prevail in companies that support their business strategies. These are analyzing work and designing jobs, determining how many employees with specific knowledge and skills are needed (human resource planning), and attracting potential employees for recruitment, choosing employees (selection), teaching employees how to 131 International Peer Reviewed Journal perform their jobs (training) and preparing them for the future (development), evaluating their performance (performance management), rewarding employees (compensation), and creating a positive work environment (human relations). Managing these practices will ensure the organization’s performance. Employees and customers tend to be more satisfied, and companies become more innovative, productive, and develop good reputation in the community when their companies have effective HRM (Noe, Hollenbeck, Gerhart & Wright, 2007). According to Robbins and Judge 2011), a person with a high level of job satisfaction has a positive job attitude, while a person who is dissatisfied has a negative attitude. Arollado and Dimaculangan (2010) mentioned that organizational performance is not only measured by the financial gains of the company; but measured by employee satisfaction, job involvement and commitment. To overcome these challenges, leaders of institutions of higher education need to strengthen people management practices to maintain the performance and high morale of their personnel. It had become apparent that enhancing and keeping high employee morale was a key factor in the pursuit of institutional success (Ngambi, 2011). Richard Steers (2011) hypothesized and found out that the more committed an employee was, the less of a desire they had to terminate his service from the organization. These “highly engaged” people have a higher intent to remain in the company, a stronger desire to attend work, and a more positive attitude on their employment. Given the previously inconclusive nature of prior studies seeking to link HRM with performance, Alfes, Delbridge Shantz,  Soane and Truss (2013) verified whether engagement can manifest a higher level of performance. FRAMEWORK The study considered the different concepts formulated in three models of management, namely, Guest’s HRM Model, Core Job Characteristic Model, and Meyer and Allen Work Commitment Theory. Fundamentally, human resource management is based on the assumption that employees are individuals with varying goals and needs. Guest’s HRM model viewed that individuals can be motivated and can help the organization achieve excellence by concentrating on six core values. These 132 JPAIR Multidisciplinary Research are HRM strategy, HRM practices, behavior, performance, financial and HRM outcomes. Guest has developed a more suited theoretical framework, reflecting the view that a core set of integrated HRM practices can achieve superior individual and organizational performance. According to core job characteristic model, works can be described in terms of five characteristics: (1) Skill Variety – skills to carry out the tasks, (2) Task Identity - completing a “whole” piece of work from beginning to end, (3) Autonomy - allows an individual to make decisions about the way the work will be carried out (4) Feedback -receives clear information about performance effectiveness, and (5) Task significance -the job has an important impact on the lives of other people (Noe, Hollenbeck). The three-component model of commitment was developed by Meyer and Allen (1997). This model presented that organizational commitment is experienced by the employee in 3 conditions such as affective, normative, and continuance commitment. Affective means commitment based on emotional ties that the employee develops with the organization primarily via positive work experiences. Normative Commitment reflects commitment based on the perceived obligation. Continuance Commitment reflects commitment based on the perceived costs, both economic and social, of leaving the workplace. Effective organizations are now realizing that among the factors that contribute to performance, the human element is the most crucial. Managers in organizations are becoming increasingly aware that a critical source of competitive advantage often comes from having the appropriate systems for attracting, motivating, and managing the organization’s human resources (Mello, 2011). OBJECTIVES OF THE STUDY The study sought to determine the people management practices of selected FHEIs in the second district of Laguna, Philippines. This undertaking led to the development of a people management model for FHEIs. Specifically, the study: 1) Examined the effectiveness of the practices undertaken by FHEIs in the following areas of people management as perceived by Department heads, teaching and non-teaching staff: Recruitment and Selection; Training and Development; Compensation and Benefits; Career Management; and, Performance Management; 2) Determined the Job Satisfaction and Work Commitment of the teaching and non-teaching staff; 3) Ascertained the relationship between 133 International Peer Reviewed Journal the effectiveness level of people management practices of FHEIs and the job satisfaction and work commitment; 4) Identified the people management issues and challenges encountered by FHEIs; and 5) Describe the ways how the HR and department heads address or resolve the problems encountered by FHEIs. METHODOLOGY The study used the combined quantitative and qualitative approaches to research. These methods enabled the researcher to assess the conditions present in the family owned institutions about the people management issues and challenges, people management practices and success indicators of FHEIs. This study verified if there was a significant relationship exists between people management practices and the selected organizational success indicators. The mean and range of mean values were used to assess the people management practices and levels of job satisfaction and work commitment. Pearson’s Coefficient of Correlation was used to determine the significant relationship between and among the people management practices and job satisfaction and work commitment. On the other hand, survey-interview was utilized to determine the issues and challenges encountered and to determine the solutions adapted to address the issues and challenges identified. Research Locale This undertaking was conducted among FHEIs located in the second congressional district of Laguna, Philippines. The second district includes the cities of Calamba and Cabuyao and the municipalities of Los Banos and Bay. Among the said locales, Bay does not have an HEI. Hence, FHEIs from the cities of Calamba, Cabuyao and Los Baños were taken as the locale of the study. Population of the Study There are 57 private HEIs located in Laguna and 17 are situated in the second district of Laguna. Out of 17 private HEIs, there are nine FHEIs. Only four FHEIs were considered because the five FHEIs expressed their intention not to participate in the study. There were two FHEIs in Calamba City that participated in the study, one in Cabuyao City and another in Los Baños, Laguna. All FHEIs have existed for more than five years. The respondents of the study were the 54 department heads, 48 teaching, and 34 non-teaching staff of selected FHEIs. The researcher attempted to make use of total population but the retrieval rate was only 88%. 134 JPAIR Multidisciplinary Research Ethical Considerations In the course of this study, the researcher sought permission from the owners/ administrators of school respondents before the conduct of this study and clearly explained to them the purpose of the research. Questionnaires, on the other hand, did not require the names of the respondents to keep their anonymity and give them the assurance of strictest confidentiality of their responses. Four school respondents were coded as HEIs A, B, C, and D as presented in this study to keep their anonymity. The researcher personally administered the questionnaires to the department heads, teaching, and non-teaching staff of the four school respondents to secure confidentiality of the survey. The researcher respected the decision of the respondents not to record the interview. The researcher carefully transcribed and presented the results of the interview to the department heads, teaching and non-teaching staff to confirm their responses in certain areas. Data Gathering Procedure The researcher served a letter of request to the school president/officer-in- charge of the FHEIs and sought permission to distribute the questionnaire to department heads, teaching and non-teaching personnel. The researcher used different methods of data collection. The survey questionnaire was the primary tool used to answer the problem and objectives of the study. An interview was conducted to explore the scenario particularly the issues and challenges encountered. As for the secondary data needed, the researcher used books, journal articles and internet links to supply the required information to substantiate the content of the study. RESULTS AND DISCUSSION Table 1. Summary assessment of people management effectiveness Variables Department Heads Teaching Staff Non-Teaching Staff Grand Mean OM I OM I OM I I 1. Recruitment & Selection 3.71 H 3.71 H 3.62 H 3.68 H 2. Training & Development 3.44 M 3.43 M 3.31 M 3.39 M 3. Compensation & Benefits 3.51 H 3.30 M 3.44 M 3.42 M 4. Career Management 3.25 M 3.22 M 3.00 M 3.16 M 5. Performance Management 3.68 H 3.67 H 3.50 H 3.61 H Group Weighted Mean 3.52 H 3.47 M 3.37 M 3.45 M 135 International Peer Reviewed Journal According to the department heads, people management practices were highly effective (3.52), while the teaching and non-teaching staff assessed the practices with an overall mean of 3.47 and 3.37, respectively. The results imply that observance of people management practices of FHEIs has to be further improved to strengthen all the loopholes in management practices so that chaos in managing people about their work and performance can be avoided. Encabo, Maningas, and Revilla (2015) revealed that both generational cohorts look at Quality Management as a culture, one that requires objective evidence, CI, and delivery of quality service; and something that must be communicated and implemented or managed by open- minded and innovative leaders. Further, the generational cohorts have similar views on the policy intervention that can be made to sustain the QM such as effective communication; QMS design improvement, and continual review of processes. The results confirmed the findings of Ivancevich (2011) which states that most managers must motivate a diverse and unpredictable group of people. The diversity results in different behavioral patterns that are in some manner related to needs and goals. This type of diversity makes the manager’s motivational work very challenging. Table 2. Summary assessment of levels of job satisfaction Variables Teaching Staff Non-Teaching Staff Grand Mean OM I OM I I 1. Skill Variety 3.71 S 3.48 U 3.59 S 2. Task Identity 3.91 S 3.78 S 3.85 S 3. Autonomy 3.98 S 3.72 S 3.85 S 4. Feedback 3.68 S 3.53 S 3.61 S 5. Task Significance 4.01 S 3.90 S 3.95 S Group Weighted Mean 3.86 S 3.68 S 3.77 S The results imply that the respondents were satisfied in all aspects of their job in terms of skill variety, task identity, autonomy, feedback, and task significance. The study of Alfes et al. (2013) contributes to the understanding of the mediating and moderating processes through which human resource management (HRM) practices are linked with behavioral outcomes. They developed and tested a moderated mediation model linking perceived HRM practices to organizational 136 JPAIR Multidisciplinary Research citizenship behavior and turnover intentions. Drawing on social exchange theory, the model posits that the effect of perceived HRM practices on both outcome variables is mediated by levels of employee engagement. Table 3. Summary assessment of work commitment Indicators Teaching Staff Non-Teaching Staff Grand Mean OM I OM I I 1. Affective 3.42 M 3.28 M 3.35 M 2. Continuance 3.01 M 3.13 M 3.07 M 3. Normative 3.32 M 3.23 M 3.28 M Group Mean 3.25 M 3.21 M 3.23 M The results imply that the commitment of teaching and non-teaching personnel of FHEIs should also be given attention and give necessary preventive measures so that their commitment toward the institution will become strong and solid. According to Arollado and Dimaculangan (2010), attracting and retaining skilled, knowledgeable and competent employees in tertiary educational institutions is important for excellent delivery of services in the changing environment. This has been a challenge in most higher education institutions that have experienced problems with low morale, skills shortage, stifled academic freedom, low salaries, higher workload, and exclusion from decision-making processes. The study of Constanti et al. (2014) determined the caused-effect relationship of job involvement, organizational commitment (normative and affective), and job satisfaction (intrinsic and extrinsic), with the intention of hospitality employees in Cyprus to either stay at or quit their post. It was found that there are positive associations between job involvement, affective and normative commitment, and intrinsic job satisfaction. Likewise, there are positive association between affective and normative organizational commitment, and intrinsic and extrinsic job satisfaction. 137 International Peer Reviewed Journal Table 4. Summary of the test of significant relationship between people management practices and job satisfaction Criteria Pearson’s r t-value Decision Interpretation Computed Tabular Overall People Management Practices versus Skill Variety 0.99 (high correlation) 10.51 1.99 Reject null hypothesis With significant relationship Overall People Management Practices versus Task Identity 0.98 (high correlation) 7.65 1.99 Reject null hypothesis With significant relationship Overall People Management Practices versus Autonomy 0.95 (high correlation) 4.19 1.99 Reject null hypothesis With significant relationship Overall People Management Practices versus Feedback 0.98 (high correlation) 8.03 1.99 Reject null hypothesis With significant relationship Overall People Management Practices versus Task Significance 0.99 (high correlation) 16.97 1.99 Reject null hypothesis With significant relationship The findings of the study imply that people management practices and job satisfaction always work together. For this reason, it is the duty and obligation of the employer to see to it that their employees are satisfied in all aspects about their (employee) work to have a conducive working place and harmonious relationships (employees and employer). Among the five variables under people management practices, only the “performance management” was found to have no significant relationship. On the other hand, the rest of the variables were all found to have significant relationship as evident by their respective t-test values, which were all greater than the tabular value of the t-test at 0.05 level of significance. Arollado and Dimaculangan (2010), found in their study a significant relationship between HR practices and company performance. Aside from the different HR practices, they also discovered that employee satisfaction was another factor in determining the company’s performance. If employees are well compensated, trained, secured in their job and treated fairly, they are satisfied with their work and are motivated to work. In the long run, motivated employees would have higher productivity that could lead to higher profit for the company. Arrowsmith and Parker (2013) conducted a case study at New Zealand Post about the engagement and performance of supervisory staff. They found out that effective engagement initiatives require political commitment on the part of HR since it requires a clear business case focused on performance, not merely 138 JPAIR Multidisciplinary Research engagement, and evidence-based approach to design and implementation. A purposive approach to employee engagement involves HR investigating employment relationship to address issues such as employee voice, work design and management agency. Table 5. Summary of the test of significant relationship between people management practices and work commitment Criteria Pearson’s r t-value Decision Interpretation Computed Tabular Overall People Management Practices versus Affective - 0.28 (low negative correlation) - 0.40 1.99 Accept null hypothesis No significant relationship Overall People Management Practices versus Continuance 0.95 (high correlation) 4.42 1.99 Reject null hypothesis With significant relationship Overall People Management Practices versus Normative 0.98 (high correlation) 7.06 1.99 Reject null hypothesis With significant relationship Result shows that people management practices and affective commitment have no significant relationship. On the other hand, the findings of the study revealed a significant relationship between people management practices and continuance commitment, and normative work commitment. The outputs of the study imply that it is the duty and obligation of the employer to see to it that their employees are happy while performing the assigned tasks to get their loyalty and commitment. The results confirm the findings of the study conducted by Arollado and Dimaculangan (2010) that employment security helps the employees to have a stronger sense of loyalty to the organization because the employees are ensured that they will not be removed from work instantly. An employee who has a better sense of commitment to the company is more likely to embrace the firms’ vision and is more likely to work better in achieving the firms’ goals and objectives. The results of the study conducted by Kehoe and Wright (2013), reveal that affective organizational commitment partially mediated the relationship between HR practice perceptions, yet fully mediated the relationship between HR practice perceptions and intent to stay with the organization. 139 International Peer Reviewed Journal Table 6. Matrix of people management issues and challenges encountered by FHEIs Parameters FHEI A FHEI B FHEI C FHEI D A. Recruitment and Selection 1. Favoritism Based on personal whims and decision The position and salary are based on trust of the management to the person No guidelines in hiring people 2. Nepotism The school owners employ relatives The school owners hire or refer friends and relatives. The school owners hire any member of the family regardless of the qualifications. 3. Hiring unqualified faculty / personnel Lack of qualified applicant in the top level academic positions. 4. Promoting unqualified faculty / personnel Hire competent and qualified personnel. 5. No permanent schedule of recruitment There is no formal HR department established. 6. Multi-tasking They let their people face and do all dirty jobs. Multi-tasking B. Training and Development 1. Unequal opportunity for attendance to training No training needs assessments Limited opportunity for career advancement and training. Limited opportunity for career advancement and training. Limited opportunity for career advancement and training. 2. Financial Constraints Insufficient budget for seminars.” Insufficient budget for seminars.” No definite policy in seminar related activity 3. Selective development programs No relevant in-house seminars. There is a limited opportunity to attend training and seminars. No relevant in-house seminars. 4. Lack of Training Programs There is limited opportunity for advancement. There is limited opportunity for advancement. There is limited opportunity for advancement. 5. Fast action (if money in) No action (if money out) The owners are profit oriented. 140 JPAIR Multidisciplinary Research Parameters FHEI A FHEI B FHEI C FHEI D C. Compensation and Benefits 1. Inadequate compensation Wage distortion due to the absence of salary scheme. There is no definite policy on faculty ranking and giving of rate. There is no definite policy on faculty ranking and giving of rate. 2. Inequitable reward system Salary distortion and unequal benefits. Salary distortion and unequal benefits. Salary distortion and unequal benefits. 3. Lack of consistent bases of rewards There’s no system in giving of rewards. There’s no system in giving of rewards. There’s no system in giving of rewards. There’s no system in giving of rewards. D. Career Management 1. Lack of career pathing program Absence of career and succession planning. Absence of career and succession planning. Absence of career and succession planning. Absence of career and succession planning. 2. No clear promotion / advancement policy There is limited opportunity for promotion and salary increment. There is limited opportunity for promotion and salary increment. There is limited opportunity for promotion and salary increment. There is limited opportunity for promotion and salary increment. E. Performance Management 1. Lack of performance monitoring system Lack of well-defined set of performance monitoring procedure. Lack of well-defined set of performance monitoring procedure. Lack of well-defined set of performance monitoring procedure. 2. Lack of feedback mechanism There are no consultation and feedback mechanisms. There are no consultation and feedback mechanisms. There are no consultation and feedback mechanisms. There are no consultation and feedback mechanisms. 3. lack of uniform skill standards The qualifications and alignment of personnel are not being observed. The qualifications and alignment of personnel are not being observed. The qualifications and alignment of personnel are not being observed. 4. Biased evaluation Nepotism and school politics Nepotism and school politics 5.Unprofessional treatment to employees Not proper treatment to employees Note: Blank columns correspond to lack/absence of similar sub-themes. 141 International Peer Reviewed Journal Table 7. Matrix of resolutions undertaken by FHEIs Parameters Sub-themes emerged A. Recruitment and Selection 1. Favoritism The school observes policies and protocol. 2. Nepotism The school hires or referred qualified and competent friends and relatives. 3. Hiring unqualified faculty /personnel The management selects the right people for the different positions. 4. Promoting unqualified faculty/ personnel No themes emerged from the textual data 5. No permanent schedule of recruitment Issues are not properly addressed 6. Multi-tasking They let their people face and do all dirty jobs B. Compensation and Benefits 1. Inadequate compensation The present administration is trying to address and resolve the issues and problems in the compensation and benefits of employees. 2. Inequitable reward system The management is transparent with the financial status of the institution 3. Lack of consistent bases of rewards No solutions are being done to resolve the issues C. Training and Development 1. Unequal opportunity for attendance to training No themes emerged from the textual data 2. Financials constraints The issues and challenges can be solved according to priorities 3. Lack of Training Programs No definite action from the management 4. Selective development programs D. Career Management 1. Lack of career pathing program No clear and definite action from the management 2. No clear promotion/advancement policy No clear and definite action from the management E. Performance management 1. Biased Evaluation An evaluation performance instrument is to be used2. Lack of performance monitoring system 3. Lack of feedback mechanism Dialogue and consultation 4. Lack of uniform skill standards The issues are not satisfactorily addressed 5. unprofessional treatment to employees No clear and definite action from the management 142 JPAIR Multidisciplinary Research Table 8. Suggested courses of action to address the cited issues and challenges Parameters Sub-themes Emerged A. Recruitment and Selection 1. Favoritism Consistency in the implementation of policies; Fair treatment to all personnel 2. Nepotism Delegation of administrative tasks to qualified professionals; Observance of professionalism among the owners 3. Hiring unqualified faculty/personnel Hiring of qualified human resource officer to process the recruitment and selection 4. Promoting unqualified faculty/personnel Development of clear standard and mechanism for promotion and salary increment 5. No permanent schedule of recruitment Utilization and empowerment of human resource department 6. Multi-tasking Role clarity, equal distribution, and delegation of work B. Compensation and Benefits 1. Inadequate compensation Review and enhancement of the existing compensation and benefits scheme 2. Inequitable reward system Benchmarking of competitive reward and salary scale 3. Lack of consistent bases of rewards Clear and definite policy in giving of rewards C. Training and Development 1. Unequal opportunity for attendance to training Provision of equal opportunity and treatment to all employees 2. Financial constraints Better understanding and support of the management to the undertakings of the school 3. Lack of Training Programs The management should support professional growth and enrichment of employees. 4. Selective development programs Provide scholarship and other grants to facilitate professional development of employees D. Career Management 1. Lack of career pathing program Provide a clear policy on career management 2. No clear promotion/advancement policy Provide a clear policy on promotion 143 International Peer Reviewed Journal E. Performance management 1. Biased Evaluation Provide a standardized performance evaluation instrument 2. Lack of performance monitoring system Hire a human resource practitioner; Conduct a performance evaluation 3. Lack of feedback mechanism To conduct meetings and provide decisions based on merit 4. Lack of uniform skill standards Hiring of an HR consultant or someone who has a full knowledge of the functions of an HR in an educational system 5. Unprofessional treatment to employees Hiring of qualified professionals to run the school CONCLUSIONS The FHEIs HR professionals should start taking a strategic role to help FHEIs respond effectively to the challenges and issues of contemporary educational institution. Having an existing human resource department is not a guarantee that the school will be free from any related issues and problems. People management issues and challenges, when not addressed properly, have the tendency to influence the attitude of employees toward their works and tarnish the image of the management. RESEARCH MODEL The proposed model of People Management reflects how the system works. Figure 2 shows four components: the founding principles such as the mission, vision, and objectives of the school. All activities of the people management must be based on the founding principles of the school to efficiently and effectively implement its policies and procedures that will bring about organizational success. This organizational success is to be reflected in the level of job satisfaction and the work commitment of teaching and non-teaching personnel as presented in the box. Another box shows the people management related issues and challenges that may influence the people management practices and the organizational success. Another box represents external inputs like government laws and policies, linkages and network to other government and private institutions that may 144 JPAIR Multidisciplinary Research greatly affect the performance of the entire people management. The main box presents the people management, depicting its components and activities, such as: 1) Recruitment and Selection which concerns on hiring; 2) Training and Development which is subdivided into two categories – planning and administration; 3) Compensation and Benefits which is divided into acquisition and maintenance, and 4) Career Management which is divided into capacity and opportunity. The first component focuses on hiring. It shows the basic procedure of hiring personnel – from the filing of the application to evaluation, where testing and teaching demonstration (for teaching applicants) could be a possible measure in evaluating applicants. After evaluation, the selection of the most qualified applicant for possible placement and appointment will be done. The second component pertains to training and development, which is subdivided into planning and administration. Planning is responsible for the creation of people management development programs and activities. Administration is responsible for the systematic and orderly implementation of policies and programs. Budget preparation and requisition will be taken charge by the planning group. The third component includes the compensation and benefits. This will also depend on the placement and performance evaluation of the teaching and non- teaching staff. Work incentives, whether in the form of intrinsic or extrinsic rewards reinforce the greater acceptance of the employee for what he does and his commitment to the job because of the promise of a good future. This will shape a healthy work climate. The last component pertains to Career Management, specifically on capacity and opportunity. Once hired, an employee will be evaluated based on his performance. In case he or she obtained a very satisfactory or outstanding performance, it will be the basis for promotion, scholarship or recognition. Having the capacity and being provided the opportunity would contribute to the effectiveness of the work process. As a result, effective and efficient performance surrounded by a healthy work climate would lead to intended organizational success such as job satisfaction and work commitment. As a whole, this works on the assumption that the model is based on strong organizational leadership that communicates the mission, vision and goals to employees build commitment, provide the necessary support, and builds the capacity of people. These stimulate the workplace attitudes of acceptance, promise 145 International Peer Reviewed Journal of work, commitment that is supported by the opportunities that influence the work process and the work climate. 146 JPAIR Multidisciplinary Research LITERATURE CITED Alfes, K., Delbridge R., Shantz,  A., Soane E.,  & Truss,  C. (2013). Employee engagement, organisational performance and individual well-being: exploring the evidence, developing the theory, The International Journal of Human Resource Management , Vol. 24- Issue 14. http://dx.doi.org/10.1080/09585 192.2013.798921 Alfes, K., Truss, C., Soane, E. C., Rees, C. and Gatenby, M. (2013), The Relationship Between Line Manager Behavior, Perceived HRM Practices, and Individual Performance: Examining the Mediating Role of Engagement. Hum. Resour. Manage., 52: 839–859. doi:10.1002/hrm.21512 Alfes, K., Shantz, A., Soane E., & Truss, C. (2013). 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