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CHEA SIM UNIVERSITY OF KAMCHAYMEAR

CHEA SIM UNIVERSITY OF KAMCHAYMEAR. KAMPONG CHAM BRANCH. FACULTY OF MANAGEMENT. HUMAN RESOURCE MANAGEMENT. SECOND YEAR. COMPELED BY: ROGER EDMUNDS B PSYCH. LECTURED BY: Mr. LONG DIMANCHE. YEAR 2013-2014. Chea Sim University of Kamchaymea Kampong Cham Branch. Chapter 1

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CHEA SIM UNIVERSITY OF KAMCHAYMEAR

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  1. CHEA SIM UNIVERSITY OF KAMCHAYMEAR KAMPONG CHAM BRANCH FACULTY OF MANAGEMENT HUMAN RESOURCE MANAGEMENT SECOND YEAR COMPELED BY: ROGER EDMUNDS B PSYCH LECTURED BY: Mr. LONG DIMANCHE YEAR 2013-2014

  2. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 1

  3. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 2

  4. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 3

  5. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 4

  6. Chea Sim University of Kamchaymea Kampong Cham Branch + Function Specialists - responsible for one or two functions; eg. Training Manager + Line Managers / Supervisors - responsible for working with employees Teach by Mr. LONG Dimanche, MBA 5

  7. Chea Sim University of Kamchaymea Kampong Cham Branch 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 • Performance – production, output, quantity, quality • Commitment – no absenteeism or lateness • Competence – well trained employees with high ability • Flexibility – multi-skilled, ready to change Teach by Mr. LONG Dimanche, MBA 6

  8. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 7

  9. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 8

  10. Chea Sim University of Kamchaymea Kampong Cham Branch 2. Analyse Environment - External:economy, laws, government, unions, technology, labour market, competitors, & social - Internal: organisation structure, management style, employees, relationships, & communication  SWOT Analysis: - Strengths: internalgood points about the organisation - Weaknesses:internal bad points about the organisation - Opportunities:externalpossibilities for improvement - Threats:external dangers that might harm organisation Teach by Mr. LONG Dimanche, MBA 9

  11. Chea Sim University of Kamchaymea Kampong Cham Branch 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. Teach by Mr. LONG Dimanche, MBA 10

  12. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 11

  13. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 12

  14. Chea Sim University of Kamchaymea Kampong Cham Branch 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.) Teach by Mr. LONG Dimanche, MBA 13

  15. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 14

  16. Chea Sim University of Kamchaymea Kampong Cham Branch 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 WordMsSrei Neath Teach by Mr. LONG Dimanche, MBA 15

  17. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 16

  18. Chea Sim University of Kamchaymea Kampong Cham Branch 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. Teach by Mr. LONG Dimanche, MBA 17

  19. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 18

  20. Chea Sim University of Kamchaymea Kampong Cham Branch • 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. Teach by Mr. LONG Dimanche, MBA 19

  21. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 20

  22. Chea Sim University of Kamchaymea Kampong Cham Branch  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 Teach by Mr. LONG Dimanche, MBA 21

  23. Chea Sim University of Kamchaymea Kampong Cham Branch  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 Teach by Mr. LONG Dimanche, MBA 22

  24. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 23

  25. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 24

  26. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 25

  27. Chea Sim University of Kamchaymea Kampong Cham Branch  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 Teach by Mr. LONG Dimanche, MBA 26

  28. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 27

  29. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 28

  30. Chea Sim University of Kamchaymea Kampong Cham Branch  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 Teach by Mr. LONG Dimanche, MBA 29

  31. Chea Sim University of Kamchaymea Kampong Cham Branch • 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' opinion • Be 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 employment • introduce the new employee to the organisation Teach by Mr. LONG Dimanche, MBA 30

  32. Chea Sim University of Kamchaymea Kampong Cham Branch 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. Teach by Mr. LONG Dimanche, MBA 31

  33. Chea Sim University of Kamchaymea Kampong Cham Branch • 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: Teach by Mr. LONG Dimanche, MBA 32

  34. Chea Sim University of Kamchaymea Kampong Cham Branch • abilities - the skills used to do the job can be increased by training • motivation - how hard the employee works can be increased by rewards • 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 Teach by Mr. LONG Dimanche, MBA 33

  35. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 34

  36. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 35

  37. Chea Sim University of Kamchaymea Kampong Cham Branch  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 Teach by Mr. LONG Dimanche, MBA 36

  38. Chea Sim University of Kamchaymea Kampong Cham Branch  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 Teach by Mr. LONG Dimanche, MBA 37

  39. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 38

  40. Chea Sim University of Kamchaymea Kampong Cham Branch  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 - 3This employee is polite towards customers and helps when suitable Teach by Mr. LONG Dimanche, MBA 39

  41. Chea Sim University of Kamchaymea Kampong Cham Branch  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 Aagree - 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 [ ] Teach by Mr. LONG Dimanche, MBA 40

  42. Chea Sim University of Kamchaymea Kampong Cham Branch  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.) Teach by Mr. LONG Dimanche, MBA 41

  43. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 42

  44. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 43

  45. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 44

  46. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 ability • impact - 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 Teach by Mr. LONG Dimanche, MBA 45

  47. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 46

  48. Chea Sim University of Kamchaymea Kampong Cham Branch 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) Teach by Mr. LONG Dimanche, MBA 47

  49. Chea Sim University of Kamchaymea Kampong Cham Branch • 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 Teach by Mr. LONG Dimanche, MBA 48

  50. Chea Sim University of Kamchaymea Kampong Cham Branch 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 Teach by Mr. LONG Dimanche, MBA 49

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