chea sim university of kamchaymear

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 environmentalQ. 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 employeesA) 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



- 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



- Recruitment and Selection- Performance Management- Training and Development- Compensation, Benefits and Payroll- Labour Relations- Occupation Health and SafetyC) The People Responsible for HRM+ HR Managers

- responsible for all HR functions in the whole organisation



+ Function Specialists- responsible for one or two functions; eg.

Training Manager+ Line Managers / Supervisors

- responsible for working with employees



Topic 2 Strategic Human Resource Management

Human resources are used to contribute to the bottom lineHuman resources are used to create a competitive advantagea) Human Resource Outcomes1. Performance – production, output, quantity, quality2. Commitment – no absenteeism or lateness3. Competence – well trained employees with high ability4. Flexibility – multi-skilled, ready to change



5. Loyalty – low turnover, employees stay at organisation6. Job Satisfaction – happy, interested employees7. Motivation – work hard, concentrate on task8. Cost Effectiveness – value for money, low labour costs9. Co-operation – no industrial relations conflict10. Safe Working Conditions–good occupational health & safetyb) Strategic Human Resource Management 1. Where do we want to go?

- goals and mission of the organisation2. Where are we now?

- analyse organisational environment



3. How will we get there?- strategy used to achieve goals

c) The Strategic Decision-Making Process1. Set Goals (S.M.A.R.T.)

- Specific- Measurable- Achievable- Rewarding- Timedeg. - 20% market share in 12 months - Open 2 new factories in 2 years



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



3. Select Strategychoose path or method that would lead to the goalSome examples of strategies are:Expansion – increase size of organisation, recruit more

employeesDownsizing – decrease size of organisation, fire employeesTraining – teach employees new skills to be multi-skilledReward – motivate with money in bonuses, profit shares

or benefitsRestructure – change organisational structure,

hierarchy, jobs, etc.



4. Apply Strategy- take action- write policy and procedures- train employees and managers5. Evaluate Strategy- measure progress towards goal- measure HR outcomes- change strategy if necessary



Topic 3 HR Function 1: Strategic Planning

Planning to have the right employee with the right skills in the right job at the right time1. Purpose of Planningencourage managers to think proactive, not reactivereduce down-time and interruptions to work processesprovide opportunity for the promotion of employeeshelp organisation prepare for changes in the environmentencourage people to focus on mission and goals



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.)



- 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



Topic 4 Job Analysis

a) Content of Job AnalysisJob Title – name of this position eg. SecretaryDuties and Tasks – what this employee does eg. type letters, answer phoneQualifications – certificates required eg. High school diplomaSkills – abilities the employee must have eg. typing 80 wpm, MS WordMs Srei Neath



Job Purpose – reason for having job eg. assist manager, save timeSupervision – who this employee reports to eg. the ManagerAuthority – what they are responsible for eg. manage petty (small) cashEquipment – what machines do they use eg. computer, deskPerformance Criteria – how to measure perform. eg. typing error ratePersonal Requirements – character traits eg. helpful, friendly



b) Methods for Finding Job Analysis Informationobservation: watch employee when they are doing their

jobinterview: discuss the job with the employee or their

managerquestionnaire: write survey questions about the jobdiary: ask the employee to write a diary about what

they domeasurement instrument: use a clock, counter,

computer, etc.



Topic 5 HR Function 2: Recruitment and Selection

The recruitment process begins with a job analysis, then setting job requirementsA Human Resource Manager must have:

knowledge of the positionknowledge of the selection criteriaknowledge of the type of person needed for the position

a) Job Requirementsrequirements for the position might include

qualifications, experience, and skills



selection criteria are measures that will be used to compare applicants, such as leadership, experience in teamwork, communication or problem-solving skill.

b) Recruitmentadvertise the position inside and/or outside the organisationdescribe the requirements and the type of person you

are looking forprovide information about the position and about the

organisationask for information and give applicants instructions

eg. call #…, send resume, etc.



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 employeeInternal Recruitment: Types of internal recruitment

- job posting: advertisement within the organisation for current employees to apply

- employee database: contact current employees directly



this can either be a transfer (across) or promotion (upwards)Advantages of internal recruitment:

organisation knows the ability of the applicantthe applicant is familiar with the organisationthere is less training requiredit creates other opportunities for promotion within the

organisationposition is filled quickly

Disadvantages of internal recruitmentcompetition for promotion may decrease morale



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 recruitmentadvertisements: newspapers, magazines, posters,

universitiesagencies: government or private agencies that

provide applicants



referrals: from employees, customers, or clientsunsolicited: applicants who contact the organisation

even if there is no vacancyAdvantages of external recruitment

many applicants to choose from (big applicant pool)new employees with new ideaschange in office relationshipsapplicant may have knowledge about the competition



Disadvantages of external recruitmentdifficult to assess the skills and suitability of

applicants who you do not knowif 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



Many organisations use both internal and external recruitment for the same position. First they advertise internally, then they advertise externally.c) Selection1. 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



assess only the applicants on the 'short-list' to save time and money

2. AssessmentThis is where the selection criteria are used to select the best applicant

Qualifications: level, title, date, and institutionExperience: length, type, varietyTests:

aptitude: ability to learn new skills intelligence: power of your brain as measured by IQ

tests



work tasks: an example of what the applicant will be doing

Examples of workproject reports the applicant has written (scientists,

teachers)portfolios and plans of their designs (artists,

architects, engineers)Reference Checks: professional, academic, personalInterviews

structured: a fixed, formal list of questionsunstructured: an informal discussion with applicant



Tips on how to conduct interviewsUnderstand the job you are going to fillKnow the requirements of the position and why they

are importantSet objectives for the type of person you are looking forReview all information you have about the applicant

before the interview Make a suitable environment for the interview –

comfortable, quiet, no distractionsLet the applicant talk and ask questions, this is how

you get to know the person



Be aware of prejudices you have towards certain types of people

Don't make quick decisions, think slowly & carefullyWrite notes so you remember and get another

persons' opinionBe clear about contact in the future

3. Acceptanceoffer the job to the best applicantif they accept, reply to all the other unsuccessful

applicantswrite a contract of employmentintroduce the new employee to the organisation



Topic 6 Function 3: Performance Management

a) Performance Management

appraising (measuring, evaluating) performance and increasing employee performance

b) Performance Appraisalmeasurement of performance criteria to evaluate

employee performanceEmployee performance is measured in different ways

depending on the position.



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 successfulPerformance = Abilities + Motivation + ResourcesIndividual employee performance depends on three factors:



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 appraisalencourage employees to focus on performance and

achieving goalsdemonstrate to employees which tasks are important



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 performanced) Who appraises performance?

a person who knows the job tasks, duties & requirements



person who knows the performance criteria and how to measure performance

a person who can observe the performance of employees Employee’s Supervisor

most commonassumption that the supervisor knows the person and

the job bestemployee may feel threatened and makes excuses

for performanceif employees feel punished their performance might

decrease



The Employeeless defensivebiased towards high performanceless likely to spot areas of poor performance

Employee’s Peersteam members often know employees performance

better than supervisorrequires a high level of trust between employeescan create competition and distrustcan be biased towards higher performance



Employee’s Subordinatean accurate measure of management and leadership

abilityimproves subordinates’ job satisfactionsubordinates can be afraid of negative consequences

Employee’s Customerscustomer satisfaction surveysimportant that the customer is satisfied

Multi-source or ‘360 degree’ evaluationperformance appraisal done by supervisor, self,

peers, subordinate, and customers



a very comprehensive analysis of employee performance

makes performance measurement a priorityencourages 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 criteriaeg. Circle the number that indicates this employee’s leadership skill: high 5 4 3 2 1 low



Behaviour Scales: similar to grading, but on a behaviour scale there is an example of each

grade that is used to compare with the employeeeg. 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



Agreement Scales: these scales are used to measure opinions and attitudes by asking how much you agree or disagree to a statementeg. 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 noteg. Has this employee completed the OH&S training course for our organisation

Yes [ ] No [ ]



Description: written description about the employee’s performanceeg. Describe a situation where this employee was under a lot of pressure and stressf) Performance Appraisal InterviewEvery 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.)



g) Sources of errorprejudice - 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



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



Topic 7 Increasing Performance through Motivation

There are two approaches to motivating employees, by satisfying needs and by giving rewards1) 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



power - respect from other people at all levelsautonomy - freedom to do their job in the way they

think is best.growth - development through learning new skills,

doing different jobschallenge - 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



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 performance2) Reward Employees:Recognition, promotion, wage bonus, benefits, gift, party, interesting work



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)



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



Topic 8Function 4: Training and Development

Training = teaching employees specific skills to be used immediatelyDevelopment = educating employees to have more potential for the futureThe Purpose of Training and Development

to increase the performance of employees at their tasksto motivate and reward employees by giving them

more skills



to make use of the latest knowledge and technologyto increase the intelligence of the organisation

There are three stages to Training and Development, assessment, action, and evaluation1. Assessment

I) Organisationreview the employee database to see what skills employees have alreadyreview organisation’s goals to see what skills are going to be needed in the future



analyse the difference between the present and future needs, and join themanalyse organisational environment to see what other factors will effect trainingII) Positionscomplete a job analysis (Topic 4)identify what skills are needed to do the duties of each jobdecide on the level of ability each job requiresIII) Peoplecheck to see if the person in the position has the skills required



check to see if there a people with skills they are not using in their current jobdecide 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



2. ActionThe Action step is about deciding how the skills will be taught. It involves a series of questions about:

I) Presentersfrom your organisation - ‘in-house’from another training organisation - ‘out-sourced’

eg. VBNK, SMS computer or video training programeducational institution eg. CSUKII) Styleclass - a classroom situation with a teacher presenting knowledge



simulation - a task that is a copy of the real work environmentactivities or workshops - practical activities to get the employees familiar with new skillsmentoring - where the employee follows and copies a ‘mentor’ or person who has the skills III) Timingduring work hoursoutside of work hoursintense, short timedrawn out, long time



3. Evaluationevaluate the effectiveness of the training programdecide if this type of training program should be used

in the future it is important to focus on the outcomes of training

not the inputsIt 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



c) Behaviours - what the employee does differently because of the training

d) Results - increased measurement of performance criteria, profits and productivity



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 records1) Compensation not enough compensation decreases motivation,

loyalty and performance



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 performancecontrol labour costs and the money spent on

wages/salariesget maximum value for moneymaintain fair, legal and equal pay for employees



Wage = money paid based on the amount of time worked, per hour or per daySalary = money and benefits paid for doing a whole job, per month or per yearThe 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



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.



a) Internal Equityjob 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 worthjob 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)



– 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.



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.



b) External Equitysalary 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.)



Question 3: about the wage/salarythen 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 demandorganisations mission and goals – the quality of

employee required (high ability, high quality, high cost, or low performance, low quality, low cost)



3) Benefits: types of Employee Benefitsa) Insurance – a reserve of money for protection that is

paid for per monthLife Insurance – payment to the family if an employee

dies at workAccident Insurance – money to cover the hospital bills

and time off workDisability Insurance – money to help an employee if

they are disabled at workHealth Care – private health care if the employee gets

sick at any time



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.



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



- 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



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



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



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 employeessolve any problems employees have before there is a

strike



help negotiate conflicts and control strikesact as an advocate between employees and managers

to help satisfy both their needsnegotiate and write employment contracts for

employeesHow managers should solve problems before they become conflicts:Listen to the concerns and dissatisfaction of the

employee. Make theemployee feel you are listening and understand about

their problems



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



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



give employees personal attentionhave company-sponsored social, sporting or cultural

eventsreward performance, commitment, loyalty & qualitycreate pride in the organisation and its products or

servicesreduce the separation of social classes between

‘management’ and ‘employees’create a pleasant, safe and healthy working

environmentprovide fair compensation



Employment Contracts formal contracts that each individual employee signscan be negotiated individually or collectively (one

person or large groups)according to the Labour Law, contracts must be less

than 2 yearscontracts can be renewed after 2 yearin some contracts, industrial action is not allowed to

affect the operation of the organisation during the contract period



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 properlydon’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 angryact in a mature, professional and ethical way



Topic 11Function 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 bodySafety: directly relates to bodily damage including accidents, injuries or death – outside the body In Australia every year:

- 2,900 people die at work



- 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



- 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 CompanySagasco 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.



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



- no fresh air- poor lighting - bright lights – causes blindness - loud noise – causes deafness- uncomfortable desks- diseases from shared drinking water- toxins and poisonsThe benefits of a healthy and safe work environment:- improved personal safety and morale- reduced payments to employees- reduced cost for insurance



- greater profit for the organisation- improved productivity and less waste- less machine down-timeHow to introduce an Occupational Health and Safety program and improve working conditionsSet OH&S objectives to reduce accidents and injuriesGet support from senior managementCreate 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



Remove any risks from the workplaceTrain employees about how to work safeConstantly reinforce that Health and Safety is a high

priorityMake regular hazard checksEvaluate the effectiveness of the OH&S program



THANKS FOR YOUR ATTENTION!

chea sim university of kamchaymear

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