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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

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Page 1: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 2: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 3: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 4: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

- 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

Page 5: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

- 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

Page 6: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

+ 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

Page 7: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 8: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 9: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 10: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 11: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 12: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 13: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 14: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 15: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

- 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

Page 16: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 17: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 18: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 19: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 20: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 21: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 22: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 23: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 24: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 25: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 26: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 27: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 28: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 29: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 30: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 31: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 32: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 33: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 34: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 35: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 36: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 37: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 38: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 39: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 40: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 41: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 42: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 43: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 44: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 45: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 46: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 47: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 48: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 49: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 50: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 51: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 52: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 53: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 54: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 55: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 56: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 57: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 58: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 59: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 60: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 61: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 62: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 63: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

– 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

Page 64: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 65: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 66: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 67: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 68: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 69: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 70: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

- 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

Page 71: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 72: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 73: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 74: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 75: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 76: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 77: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 78: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 79: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 80: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 81: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

- 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

Page 82: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

- 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

Page 83: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 84: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

- 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

Page 85: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

- 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

Page 86: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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

Page 87: Chapter 1 Introduction to Human Resource Management Q. What is Management? A. It is the process of Planning, Organizing, Leading & Controlling, the use

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