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CHEA SIM UNIVERSITY OF KAMCHAYMEAR
KAMPONG CHAM BRANCH
HUMAN RESOURCE MANAGEMENT
FACULTY OF MANAGEMENT
SECOND YEAR
COMPELED BY: ROGER EDMUNDS B PSYCH
LECTURED BY: Mr. LONG DIMANCHE
YEAR 2013-2014
Chapter 1
Introduction to Human Resource Management
Q. What is Management?
A. It is the process of Planning, Organizing, Leading &
Controlling, the use of people and other resources to
accomplish an organization goal.
Q. What are "Resources"?
A. It is the materials used to make a profit – financial,
social or environmental
Q. What are "Humans"?
A. - people, employees, managers
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 1
Therefore, Human Resource Management is the
controlling people to make a profit.
Or, a more comprehensive definition might be:
Managing employees and positions to achieve the goals
of the organisation & satisfy the needs of the employees
A) The importance of HRM
- organisations are only groups of people so if there are
no people, there is no organisation
- machines, computers and factories all need people to
operate them, without employees, the machines,
computers and factories cannot work
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 2
- the success of the organisation is a combination of the
success of the individual employees, so if the
employees are successful, the organisation will be
successful.
- different organisations often have the same machines,
products and processes, and are very competitive, so
the only way to get an advantage and beat the
competition is to have very good employees who work
hard.
B) The Seven Functions of HRM
- Strategic Planning
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 3
- Recruitment and Selection
- Performance Management
- Training and Development
- Compensation, Benefits and Payroll
- Labour Relations
- Occupation Health and Safety
C) The People Responsible for HRM
+ HR Managers
- responsible for all HR functions in the whole
organisation
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 4
+ Function Specialists
- responsible for one or two functions; eg.
Training Manager
+ Line Managers / Supervisors
- responsible for working with employees
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 5
Topic 2
Strategic Human Resource Management
Human resources are used to contribute to the bottom line
Human resources are used to create a competitive
advantage
a) Human Resource Outcomes
1. Performance – production, output, quantity, quality
2. Commitment – no absenteeism or lateness
3. Competence – well trained employees with high ability
4. Flexibility – multi-skilled, ready to change
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 6
5. Loyalty – low turnover, employees stay at organisation
6. Job Satisfaction – happy, interested employees
7. Motivation – work hard, concentrate on task
8. Cost Effectiveness – value for money, low labour costs
9. Co-operation – no industrial relations conflict
10. Safe Working Conditions–good occupational health & safety
b) Strategic Human Resource Management
1. Where do we want to go?
- goals and mission of the organisation
2. Where are we now?
- analyse organisational environment
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 7
3. How will we get there?
- strategy used to achieve goals
c) The Strategic Decision-Making Process
1. Set Goals (S.M.A.R.T.)
- Specific
- Measurable
- Achievable
- Rewarding
- Timed
eg. - 20% market share in 12 months
- Open 2 new factories in 2 years
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 8
2. Analyse Environment
- External: economy, laws, government, unions,
technology, labour market, competitors, & social
- Internal: organisation structure, management
style, employees, relationships, & communication
SWOT Analysis:
- Strengths: internal good points about the organisation
- Weaknesses: internal bad points about the organisation
- Opportunities: external possibilities for improvement
- Threats: external dangers that might harm organisation
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 9
3. Select Strategy
choose path or method that would lead to the goal
Some examples of strategies are:
Expansion – increase size of organisation, recruit more
employees
Downsizing – decrease size of organisation, fire employees
Training – teach employees new skills to be multi-skilled
Reward – motivate with money in bonuses, profit shares
or benefits
Restructure – change organisational structure,
hierarchy, jobs, etc.
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 10
4. Apply Strategy
- take action
- write policy and procedures
- train employees and managers
5. Evaluate Strategy
- measure progress towards goal
- measure HR outcomes
- change strategy if necessary
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 11
Topic 3
HR Function 1: Strategic Planning
Planning to have the right employee with the right skills in
the right job at the right time
1. Purpose of Planning
encourage managers to think proactive, not reactive
reduce down-time and interruptions to work processes
provide opportunity for the promotion of employees
help organisation prepare for changes in the environment
encourage people to focus on mission and goals
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 12
2. Types of HR Plans
Employee Database (Human Resource Information
System - HRIS)
- a database or file that contains all information
about employees such as personal details, skills,
qualifications, experience, history.
- useful in internal recruitment (Function 2)
Turnover Analysis:
- conduct an exit interview with employee
- find out the reason for leaving (fired, frustrated,
better job, etc.)
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 13
- find out about future plans (retirement, different job,
etc)
- record the length of service
Promotion Rating
- an evaluation of each employee and a rating about
their suitability for promotion, from high to low.
-based on performance appraisal (Function 3)
Replacement Plan
- a plan to put specific employees in specific positions
- eg. Mr Sopheak is retiring and will be replaced by Ms
Srei Neath
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 14
Topic 4
Job Analysis
a) Content of Job Analysis
Job Title – name of this position eg. Secretary
Duties and Tasks – what this employee does
eg. type letters, answer phone
Qualifications – certificates required
eg. High school diploma
Skills – abilities the employee must have
eg. typing 80 wpm, MS WordMs Srei Neath
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 15
Job Purpose – reason for having job
eg. assist manager, save time
Supervision – who this employee reports to
eg. the Manager
Authority – what they are responsible for
eg. manage petty (small) cash
Equipment – what machines do they use
eg. computer, desk
Performance Criteria – how to measure perform.
eg. typing error rate
Personal Requirements – character traits
eg. helpful, friendly
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 16
b) Methods for Finding Job Analysis Information
observation: watch employee when they are doing their
job
interview: discuss the job with the employee or their
manager
questionnaire: write survey questions about the job
diary: ask the employee to write a diary about what
they do
measurement instrument: use a clock, counter,
computer, etc.
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 17
Topic 5
HR Function 2: Recruitment and Selection
The recruitment process begins with a job analysis, then
setting job requirements
A Human Resource Manager must have:
knowledge of the position
knowledge of the selection criteria
knowledge of the type of person needed for the position
a) Job Requirements
requirements for the position might include
qualifications, experience, and skills
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 18
selection criteria are measures that will be used to
compare applicants, such as leadership, experience in
teamwork, communication or problem-solving skill.
b) Recruitment
advertise the position inside and/or outside the organisation
describe the requirements and the type of person you
are looking for
provide information about the position and about the
organisation
ask for information and give applicants instructions
eg. call #…, send resume, etc.
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 19
It is important to think about:
the number of people who apply (the more the better)
the likelihood or chance that there will be a suitable
applicant who applies
the time and money available to find a new employee
Internal Recruitment:
Types of internal recruitment
- job posting: advertisement within the
organisation for current employees to apply
- employee database: contact current employees
directly
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 20
this can either be a transfer (across) or promotion
(upwards)
Advantages of internal recruitment:
organisation knows the ability of the applicant
the applicant is familiar with the organisation
there is less training required
it creates other opportunities for promotion within the
organisation
position is filled quickly
Disadvantages of internal recruitment
competition for promotion may decrease morale
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 21
this can either be a transfer (across) or promotion
(upwards)
Advantages of internal recruitment:
organisation knows the ability of the applicant
the applicant is familiar with the organisation
there is less training required
it creates other opportunities for promotion within the
organisation
position is filled quickly
Disadvantages of internal recruitment
competition for promotion may decrease morale
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 22
no new ideas or different experiences coming in to
the organisation
requires good training to give an employee the ability
to do a higher level job
creates other positions in the organisation that need
filling by recruitment
External Recruitment: Types of external recruitment
advertisements: newspapers, magazines, posters,
universities
agencies: government or private agencies that
provide applicants
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 23
referrals: from employees, customers, or clients
unsolicited: applicants who contact the organisation
even if there is no vacancy
Advantages of external recruitment
many applicants to choose from (big applicant pool)
new employees with new ideas
change in office relationships
applicant may have knowledge about the competition
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 24
Disadvantages of external recruitment
difficult to assess the skills and suitability of
applicants who you do not know
if you make the wrong selection and the applicant is
not suitable, then it is a very expensive mistake
through recruitment costs and loss of working time
external applicants have to be orientated and
familiarised with the organisations which takes time
other employees who wanted to be promoted may
have bad feeling
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 25
Many organisations use both internal and external
recruitment for the same position. First they advertise
internally, then they advertise externally.
c) Selection
1. Screening
screen resumes and remove under-qualified and over-
qualified applicants
select the most suitable applicants and put them on a
'short-list'
possibly give them an application form to complete
before or after screening
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 26
assess only the applicants on the 'short-list' to save
time and money
2. Assessment
This is where the selection criteria are used to select the
best applicant
Qualifications: level, title, date, and institution
Experience: length, type, variety
Tests:
aptitude: ability to learn new skills
intelligence: power of your brain as measured by IQ
tests
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 27
work tasks: an example of what the applicant will
be doing
Examples of work
project reports the applicant has written (scientists,
teachers)
portfolios and plans of their designs (artists,
architects, engineers)
Reference Checks: professional, academic, personal
Interviews
structured: a fixed, formal list of questions
unstructured: an informal discussion with applicant
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 28
Tips on how to conduct interviews
Understand the job you are going to fill
Know the requirements of the position and why they
are important
Set objectives for the type of person you are looking for
Review all information you have about the applicant
before the interview
Make a suitable environment for the interview –
comfortable, quiet, no distractions
Let the applicant talk and ask questions, this is how
you get to know the person
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 29
Be aware of prejudices you have towards certain
types of people
Don't make quick decisions, think slowly & carefully
Write notes so you remember and get another
persons' opinionBe clear about contact in the future
3. Acceptance
offer the job to the best applicant
if they accept, reply to all the other unsuccessful applicants
write a contract of employmentintroduce the new employee to the organisation
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 30
Topic 6
Function 3: Performance Management
a) Performance Management
appraising (measuring, evaluating) performance and
increasing employee performance
b) Performance Appraisal
measurement of performance criteria to evaluate
employee performance
Employee performance is measured in different ways
depending on the position.
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 31
Generally, performance means productivity, outputs
or achievement.
eg. Performance for a sales position might be
measured in the number of products sold, or
performance for a garment worker might be the
number of garments made per hour.
Research has shown that organisations with
performance appraisal systems are more successful
Performance = Abilities + Motivation + Resources
Individual employee performance depends on three
factors:
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 32
1) abilities - the skills used to do the job can
be increased by training
2) motivation - how hard the employee works can
be increased by rewards
3) resources - materials needed to do the job can
be increased by organisation
c) The purpose of performance appraisal
encourage employees to focus on performance and
achieving goals
demonstrate to employees which tasks are important
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 33
make management decisions about training,
compensation and downsizing
develop employees, increase strengths and reduce
weaknesses
reward high performing employees with bonuses,
commissions, and other rewards
distinguish between good employees and bad
employees
find ways of improving performance
d) Who appraises performance?
a person who knows the job tasks, duties & requirements
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 34
person who knows the performance criteria and how
to measure performance
a person who can observe the performance of employees
Employee’s Supervisor
most common
assumption that the supervisor knows the person and
the job best
employee may feel threatened and makes excuses
for performance
if employees feel punished their performance might
decrease
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 35
The Employee
less defensive
biased towards high performance
less likely to spot areas of poor performance
Employee’s Peers
team members often know employees performance
better than supervisor
requires a high level of trust between employees
can create competition and distrust
can be biased towards higher performance
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 36
Employee’s Subordinate
an accurate measure of management and leadership
ability
improves subordinates’ job satisfaction
subordinates can be afraid of negative consequences
Employee’s Customers
customer satisfaction surveys
important that the customer is satisfied
Multi-source or ‘360 degree’ evaluation
performance appraisal done by supervisor, self,
peers, subordinate, and customers
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 37
a very comprehensive analysis of employee
performance
makes performance measurement a priority
encourages co-operation between different levels in
the hierarchy
takes a long time and a lot of effort
e) Methods of Performance Appraisal
Grading: writing a letter or number grade for
each criteria
eg. Circle the number that indicates this employee’s
leadership skill: high 5 4 3 2 1 low
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 38
Behaviour Scales: similar to grading, but on a
behaviour scale there is an example of each
grade that is used to compare with the employee
eg. Please circle the grade that matches the
employee’s customer service behaviour
- 5 This employee is very respectful, helpful and
does more than customer expects
- 4 This employee is helpful, polite, respectful and
does everything customers ask
- 3 This employee is polite towards customers and
helps when suitable
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 39
Agreement Scales: these scales are used to measure
opinions and attitudes by asking how much you agree or
disagree to a statement
eg. This employee has a lot of potential and aptitude
to be a manager:
SA strongly agree - 5 A agree - 4 N neutral - 3
D disagree - 2 SD strongly disagree - 1
Checklist: to measure if the person does the action or not
eg. Has this employee completed the OH&S training
course for our organisation
Yes [ ] No [ ]
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 40
Description: written description about the
employee’s performance
eg. Describe a situation where this employee was under
a lot of pressure and stress
f) Performance Appraisal Interview
Every 3, 6, 9 or 12 months, an employee and their supervisor
will meet to discuss the performance appraisal.
This is an opportunity to measure performance, discuss
any problems, set goals, and decide on an outcome (more
training, a reward, etc.)
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 41
g) Sources of error
prejudice - pre-judging the performance of an
individual or group of people before completing the
performance appraisal and analysing all the data
collected
hard or soft bias - the person doing the appraisal
always being very easy or very difficult
good or bad effect - judging all criteria based on the
measurement of one obvious criteria
recency effect - events just before the appraisal are
remembered most
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 42
relationship effect - friendships, length of the
relationship, trust, similarity can bias results
...the best way to reduce errors is just to be aware that
they exist and this usually reduces the bias
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 43
Topic 7
Increasing Performance through Motivation
There are two approaches to motivating employees, by
satisfying needs and by giving rewards
1) Satisfy Employee’s Needs:
basic living requirements - money to buy food,
accommodation, clothes, etc.
safety and security - no threat of losing job, being
injured or being harmed in any way
social relationships - friendly peers, respectful
supervisors, time to talk together
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 44
power - respect from other people at all levels
autonomy - freedom to do their job in the way they think is best.
growth - development through learning new skills,
doing different jobs
challenge - tasks that test their skills and require all
the employee’s abilityimpact - seeing the outcome of their work and that
their job is important to the organisation
Job Satisfaction
a positive feeling towards work when all needs are
satisfied
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 45
based on:
task characteristics: the type of work the employee
has to do
social environment: people the employee works with
personal feelings: attitudes, likes and dislikes about
work
when employees’ needs are satisfied, they are more
likely to be motivated and have high performance
2) Reward Employees:
Recognition, promotion, wage bonus, benefits, gift, party,
interesting work
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 46
Important points about using money and rewards to
increase motivation:
managers must be able to accurately measure
employees performance
managers should know what employees would like
(money, holidays, recognition, etc.)
incentives and rewards must be linked to
performance
incentives must be given fairly and equally (only
based on performance)
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 47
Rewards should be given immediately after the good
performance, do not wait. The aim is for managers to
teach employees that if they have good performance,
then they get a reward.
Rewards that the employee chooses are more effective
than rewards the managers just give them
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 48
Topic 8
Function 4: Training and Development
Training = teaching employees specific skills to be used
immediately
Development = educating employees to have more
potential for the future
The Purpose of Training and Development
to increase the performance of employees at their tasks
to motivate and reward employees by giving them
more skills
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 49
to make use of the latest knowledge and technology
to increase the intelligence of the organisation
There are three stages to Training and Development,
assessment, action, and evaluation
1. Assessment
I) Organisation
review the employee database to see what skills
employees have already
review organisation’s goals to see what skills are
going to be needed in the future
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 50
analyse the difference between the present and
future needs, and join them
analyse organisational environment to see what
other factors will effect training
II) Positions
complete a job analysis (Topic 4)
identify what skills are needed to do the duties of each job
decide on the level of ability each job requires
III) People
check to see if the person in the position has the
skills required
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 51
check to see if there a people with skills they are
not using in their current job
decide which employees need to be trained:
people with the right aptitude
look at the performance measurements of each
employee
review HR plan
The final result of the assessment step is a decision about
which employee will be trained in which skills. eg. Teach
Ms Sokunthea how to use MS Excel
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 52
2. Action
The Action step is about deciding how the skills will be
taught. It involves a series of questions about:I) Presenters
from your organisation - ‘in-house’
from another training organisation - ‘out-sourced’
eg. VBNK, SMS computer or video training program
educational institution eg. CSUK
II) Style
class - a classroom situation with a teacher presenting knowledge
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 53
simulation - a task that is a copy of the real work
environment
activities or workshops - practical activities to get
the employees familiar with new skills
mentoring - where the employee follows and copies
a ‘mentor’ or person who has the skills
III) Timing
during work hours
outside of work hours
intense, short time
drawn out, long time
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 54
3. Evaluation
evaluate the effectiveness of the training program
decide if this type of training program should be used
in the future
it is important to focus on the outcomes of training
not the inputs
It is possible to measure four types of outcomes
a) Learning - an examination or practical test that
demonstrates the knowledge
b) Feelings - what the employees feel about the worth
of the training
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 55
c) Behaviours - what the employee does differently
because of the training
d) Results - increased measurement of performance
criteria, profits and productivity
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 56
Topic 9
Function 5: Compensation, Benefits and Payroll
Compensation = the organisation gives money in
exchange for employee’s time and effort (financial)
Benefits = in addition to money, the organisation provides
services to the employee (non-financial)
Payroll = the process of paying employees money and
keeping accounting records
1) Compensation
not enough compensation decreases motivation,
loyalty and performance
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 57
too much compensation decreases the profits and
competitive advantage of the organisation
The aims of the compensation, benefits and payroll
function:
attract and keep high performing, good quality
employees
reward good performance
control labour costs and the money spent on
wages/salaries
get maximum value for money
maintain fair, legal and equal pay for employees
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 58
Wage = money paid based on the amount of time worked,
per hour or per day
Salary = money and benefits paid for doing a whole job,
per month or per year
The Labour Law of the Kingdom of Cambodia requires that:
wage payments to workers and low level employees
be paid twice-monthly (16 days)
salary payments to other employees be paid monthly
commissions owed to sales agents or representatives
be paid three monthly
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 59
wages cover the basic living costs of workers and
their families based on circumstances
if pay-day happens to be a holiday, wages must be
paid a day in advance
2) How to decide about compensation amounts:
- for wages and salaries to be fair, they must be equal
with other positions inside the organisation – internal
equity – and equal with positions outside the
organisation in other organisations.
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 60
a) Internal Equity
job analysis/job description (from Topic 4): look at the
requirements, duties, tasks and responsibilities of the
position and think about how much money this position
is worth
job evaluation: using information from the job
analysis/job description, evaluate the worth of the job
using one of the following methods – more accurate
than guessing
Job Ranking – listing the ‘biggest’ job (eg. CEO), down to
the ‘smallest’ job (eg. worker)
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 61
– the order of positions should match the order of salaries
Job Grading
writing a grade description for each level of position
in the organisation
deciding on an amount of wage or salary for each
level of position
each group of positions has it 4 to 7 grades with
descriptions and wage or salary level
eg. Accountant, Grade 2, $1,100 p.m
Electrician, Grade 1, $20 p.h, focuses on position
Manager, Grade 3, $1,600 p.m.
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 62
Point System
calculating the worth of a position by adding together
all the points given for each job criteria such as
qualification, experience, skills
decide on an the number of points for each criteria and
then the amount of money paid for each point
eg. Bachelor Degree = 150 points
4 years experience = 185 points, focuses on person
Computer skills = 70 point
Length of service = 45 points
total = 250 points, 1 point = $1 p.m., :: = $250 p.m.
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 63
b) External Equity
salary survey
like any other survey, a salary survey is a list of
questions about compensation
to find out about external equity, you would ask
managers in other organisations how much they pay
their employees
Question 1: about the position (duties, tasks,
responsibilities, requirements, etc.)
Question 2: about the person (experience,
qualifications, skills, etc.)
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 64
Question 3: about the wage/salary
then compare this information to your organisation
and set wage/salary amount
Other issues that need to be considered are
union demands about compensation
labour market supply and demand
organisations mission and goals – the quality of
employee required (high ability, high quality, high
cost, or low performance, low quality, low cost)
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 65
3) Benefits: types of Employee Benefits
a) Insurance – a reserve of money for protection that is
paid for per month
Life Insurance – payment to the family if an employee
dies at work
Accident Insurance – money to cover the hospital bills
and time off work
Disability Insurance – money to help an employee if
they are disabled at work
Health Care – private health care if the employee gets
sick at any time
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 66
House or Car Insurance – protection for property if it
is stolen, broken or burnt
b) Payment For Time Not Worked
annual leave / holidays – 15 days per year average
sick leave – for when the employee is sick
maternity leave – for when women have children
then come back to work
compassionate leave – if a member of their family
dies or is sick
personal leave – to attend special events like a
wedding, ceremony, etc.
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 67
c) Flexible Work Schedules – hours of work chosen by
the employee
d) Superannuation and Retirement – money saved for
when the employee retires
e) Other – such as a laptop computer, mobile phone,
sports tickets, security parking
4) Payroll
- a record of amounts and dates wages were paid
(usually for previous 5 year period)
- full record of other financial payments including
bonuses, commissions and benefits
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 68
- notification to employees of the amounts paid -
especially if deposited to a bank account
- acknowledgement of wages received in the form of a
signature
- a plan of payments that allows for public and
personal holidays
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 69
Topic 10
Function 6: Industrial Relations
The relationship between managers and employees.
Managers sometimes attempt to make employees work
very hard for low pay and under bad conditions.
Employees then form unions to protect themselves and
go on strike when they want more pay or better working
conditions.
Unions are formed because managers have failed to
care for their employees
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 70
Unions protect the rights of employees but do not care
about the organisation and many times unions have
caused companies to go bankrupt with demands that
are too high
Managers and Employees often become enemies and
fight each other, and this wastes a lot of time, money
and energy
Therefore, if managers what to reduce the power of
unions to increase efficiency, they have to care for and
protect the employees instead of the union
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 71
Good managers try to create a co-operative approach
where employees are cared for and the focus is on
teamwork and co-operation so that both managers and
employees get what they want, managers help
employees and employees help managers
Human Resource Managers are responsible for the
following:
provide fair compensation and good working conditions
for all employees
solve any problems employees have before there is a
strike
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 72
help negotiate conflicts and control strikes
act as an advocate between employees and managers
to help satisfy both their needs
negotiate and write employment contracts for
employees
How managers should solve problems before they
become conflicts:
Listen to the concerns and dissatisfaction of the
employee. Make the
employee feel you are listening and understand about
their problems
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 73
Collect all the facts about the problem, talk to the
employee(s) involved and gather information as evidence.
Act quickly. Make the employee feel this is a priority for
management and that they do not have to go to the
union for help
Act with confidence. Do not be afraid of the union or any
other party. Use your power to solve the problem in the best
possible way without relying on other parties
Keep the issue in proportion. Do not overreact or make the
problem seem bigger than it really is, remembering that
problems are easier to solve when they are small
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 74
Creating good relationships between workers & managers:
see employees as vitally important to the achievement
of goals and success of the organisation - a strategic
resource
take responsibility for industrial relations - instead of the
unions being given responsibility
make all senior managers, middle managers and
supervisors responsible for creating positive
relationships with workers
open up communication between workers and
managers
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 75
give employees personal attention
have company-sponsored social, sporting or cultural
events
reward performance, commitment, loyalty & quality
create pride in the organisation and its products or
services
reduce the separation of social classes between
‘management’ and ‘employees’
create a pleasant, safe and healthy working
environment
provide fair compensation
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 76
Employment Contracts
formal contracts that each individual employee signs
can be negotiated individually or collectively (one
person or large groups)
according to the Labour Law, contracts must be less
than 2 years
contracts can be renewed after 2 year
in some contracts, industrial action is not allowed to
affect the operation of the organisation during the
contract period
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 77
sometimes industrial action occurs when the contracts
have to be renewed
Some points to remember about negotiations will unions:
listen well - hear all the details and the repeat it back to
check that it was received properly
don’t be pressured - take time to consider options and
look for other options
focus on issues that are not emotional - stick to the
facts and don’t get angry
act in a mature, professional and ethical way
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 78
Topic 11
Function 7: Occupational Health and Safety (OH&S)
Occupational = about a job or position (occupation means
job)
Health = issues that concern health: toxins, carcinogens,
dust, stress, diseases, etc. – inside the body
Safety: directly relates to bodily damage including
accidents, injuries or death – outside the body
In Australia every year:
- 2,900 people die at work
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 79
- 650,000 people are injured
- 2,200 people die because of exposure to
hazardous chemicals
- $AU 27,000,000,000 ($US15billion) is lost
because of accidents
- more time is lost through accidents than
through industrial action
- It is management’s responsibility to provide a healthy and
safe working environment for their employees.
- Minimising accidents and injuries is important to having
a successful business
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 80
- Poor OH&S gives the organisation a bad reputation
- Good managers see the benefit in having good OH&S
policy and procedures and work very hard to reduce the
number of accidents
- Bad managers ignore accidents and think that this cost
is just part of doing business
The Case of Sagasco Oil Company
Sagasco continually made a pre-tax profit of between 7
and 8 million dollars per year. But due to poor OH&S, they
would lose more than 3 million dollars, reducing their
profit.
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 81
The CEO started to get serious about health and safety and
improved performance by more than 85%. The accident rate
went from 60 accidents per one million working hours to 10.
As a result, Sagasco saved over 2 million dollars per year on
accidents and their profits increased.
Occupational Health and Safety risks include:
- electric shocks from wires
- falling over or tripping
- falling objects onto a person
- fires and burns
- dangerous machines
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 82
- no fresh air
- poor lighting
- bright lights – causes blindness
- loud noise – causes deafness
- uncomfortable desks
- diseases from shared drinking water
- toxins and poisons
The benefits of a healthy and safe work environment:
- improved personal safety and morale
- reduced payments to employees
- reduced cost for insurance
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 83
- greater profit for the organisation
- improved productivity and less waste
- less machine down-time
How to introduce an Occupational Health and Safety
program and improve working conditions
Set OH&S objectives to reduce accidents and injuries
Get support from senior management
Create an OH&S committee – a group of managers and
employees responsible for OH&S
Introduce an Occupational Health and Safety Policy –
written by the OH&S committee
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 84
Remove any risks from the workplace
Train employees about how to work safe
Constantly reinforce that Health and Safety is a high
priority
Make regular hazard checks
Evaluate the effectiveness of the OH&S program
Chea Sim University of Kamchaymea Kampong Cham Branch
Teach by Mr. LONG Dimanche, MBA 85
THANKS FOR YOUR
ATTENTION!