National Institute of Management€¦ · National Institute of Management 2 Strengthening an Effective Performance Promotion 13, Management

National Institute of Management 1

Strengthening an Effective Performance

Promotion 13, Management

National Institute of Management

Topic

Strengthening an Effective Employee's Performance

EAST ASIATIC COMPANY Ltd.

RESEARCHED BY

HENG BUNSONG (Management Field)

RESEARCHED UNDER THE INSRUCTIONS OF

1.) KANG SOVANNARA (CHAIRMAN)

2.) NHEK SOKUN (COMMITTEE)

3.) NOUN NOPCHAN (COMMITTEE)

A DISSERTATION FOR COMPLETION OF BACHELOR OF

BUSINESS ADMINISTRATION

PROMOTION 13

ACADEMIC YEAR 1996-2000




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Preface Acknowledgement Abstract Chapter I Introduction Research Proposal 1. Rational 2. Problem Statement 3. Objective of Study 4. Research Framework 5. Scope and Limitation of Study 6. Research Methodology 7. Important of Study 8. Organization of Study

Chapter II: Literature Review 1. Human Resource Management

1.1 Human Resource Management Process 1.2 Human Resource Management Wheel 1.3 Achieving the best of West and East 1.4 Human Resource Development

2. Training and Development

2.1 Introduction 2.2 What is Training 2.3 Training Versus Development 2.4 Reasons of Induction 2.5 Training and Development 2.6 Needs Analysis 2.7 Training and Development Role 2.8 Orientation and Employee Training

2.8.1 Orientation 2.8.2 Some Functions on Orientation

2.9 Employee Training 2.10 Training Process 2.11 Needs Assessment 2.12 Training Method

2.12.1 On-the-Job Training and Job Rotation 2.12.2 Off-the-Job Training 2.12.3 Classroom Training 2.12.4 Evaluating Training




3. Career Development 3.1 Benefit of the Career Development 3.2 Implementing Career Development 4. Performance Appraisal System Who Conduct Evaluation Assessing the Value of Performance Appraisal

4.1 Performance Appraisal Definition and Uses 4.2 Performance Appraisal Methods 4.3 Potential Error in Performance Appraisals 4.4 Development Performance Improvement Plans 4.5 Introducing a New Approaches to Performance Appraisal

5. The Organizational Reward System 5.1 Organization Reward Precondition for Implementing a Pay-For-Performance Program Define Job Satisfaction and its five major components 5.2 Employee Compensation 5.3 Model of the Consequences of Pay Dissatisfaction 5.4 Pay Equity




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The regional economic integration have tranformed Cambodia economic more

rapid growth after Cambodia was admitted in ASEAN ( Asia South East Association). However, some factors was not materialized, but it has produce some benefit for the following years.

Due to the above circumstance, every government in regional had strengthen

their economic in all fields, that will ensure the continuity of the prosperity. Human resource was one of the main factor in developing the country, especially the Cambodia government have focused it as a major factor in restoring the economic which was stagnent for more than 2 decades and in its preparation to compete with regional and international. Beside, in the private company and non-government organization in Cambodia had faced the difficulties of the human resource management such as: training and development, that ‘s why I was composed this book for recommendation to the employee and employer, to ensure the effective of personnel management. Actually, East Asiatic Company, Marlboro imported company also faced some obstacles in competition and its strengthening the productivity of employee’s performance. To ascertain what was their performance, I had decided to do internship in the department of personnel in this company. Although, this document was not a perfect one but it is also a benefit and knowledge of all readers for their reference and considertion. I strongly believe that, I would gain support in recommendation and criticism in order to correct and fill up any lack, result from my dissertation, during and after my internship from all circles.




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In order to have thid dissertation presented before all audiences, I owe a lot to many people who assisted me to bring about this merit. First of all, I would like to dedicate this merit to my parents, aunts, brothers and sisters. These people helped me by providing in both financial and spiritual supports. Secondly, I would like to express my deep thanks to the instructors of the National Institute of Management, as well as the director and all staff, especially to instructor Kang Sovannara (Chairman), instructor Nhek Sokun and instructor Noun NopChan (Committee) who actively directed and advised the research study thoroughly providing priceless knowledge and experiences. Subsequently, I would like to express memorable thanks to East Asiatic Company for taking serious consideration on my research study and providing many practical experiences in the application of management and actual job situations. I especially express the memorable thanks to Mr. Y Pola, Promotion Manager, who provide many points of reference pertaining to the field of management and application and to Director of East Asiatic Company, who gave very serious consideration to my research study and provided many valuable reading material pertaining to the company. In addition, I would like to ecpress deep thanks to The Georgetown University and University of San Francisco who have helped strengthen the National Institute of Mangement for nearly four years in the Bachelor of Business Administration Program for student promotion 13. Finally to I would like to express my great thanks to all respondents who have paid their priceless times and helped providing answers to the questionnairs providing valuable information for personnel management and decision making. Through the best of my memories, I will ever keep these people and appreciate their kindness and favors forever and ever.

Thanks, HENG BUNSONG

Researcher, Promotion13.




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A mushrooming of local company in Cambodia had led the economic become more competitive and no longer monopoly in the private sector. These factors had fostered each company to strengthen their core competence in standing and expanding the market share.

Under the circumstance, the East Asiatic Company imported many kinds of

products but the main is Marlboro Cigarette and now the L&M too, have invested in Cambodia for many years. And the company had also boosted the Cambodia economic.

As a result of those situations, I have make up my mind to do internship in this

Company and focus on personnel management such as: training and development compensation, because I think that human resource was a necessary in business transaction for prosperity.




CHCHCHCHAPTER IAPTER IAPTER IAPTER I RESEARCH PROPOSALRESEARCH PROPOSALRESEARCH PROPOSALRESEARCH PROPOSAL

East Asiatic Company

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People of today generation grow up in an era of transformation and rapid change. For the time being, a globalize economy have created both more hazards and more opportunities for everyone, forcing firm to make dramatic improvements not only to compete and prosper but also to merely survive. Globalization, in turn, is being driven by a broad and powerful set of forces associated with technological change, international economic integration, and domestic market maturation within the more developed countries, and the collapse of the worldwide communism. Under the circumstances, if the world of twenty-first century were going to be stable, regulated, and prosperous, the firms will grow rapidly with more competition, but the market share would not grow as fast as firm growth, so undertaking business will face a lot of difficulties. In preparation for the next millennium, many countries of the world have started to attract the investors to their countries by using different strategy; as a result in the Summit of the Asia Pacific Economic Forum. The idea of opening up the market and keeping it open as well as reducing obstacles to investment and trade in economy is the keynote of improving the economic situation. Thus, businesspeople resume investing in many areas in order to expand the market shares and profits. Those activities will lead the world toward its open trade financial stability and economic development. In Cambodia, the Royal Government had formulated The Council for the Development of Cambodia, which responsible for the rehabilitation, development and investment activities. The law on the investment had been released and some provisions such as Investment Procedures, Investment Guarantee, Investment Incentives, Land Ownership and Use, Employment Practices, Dispute and Dissolution attracted many investors to make up their mind and bring their capital to open the company in Cambodia. Among the invested company, East Asiatic Company is one of the best that still performs well on it ongoing activities in Cambodia.

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How should the East Asiatic Company strengthen its employee’s performance

for high commitment and more effective on its ongoing activities?




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This research is designed to improve the current situation of the company, the

main objectives are focused on the Human Resource Management, and specifically our main objectives are

�� Training and Development

� Performance Appraisal � Compensation to the employee

�� To analyze the gap and make recommendation to company for improving its actions.

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Conclusion and Recommendation

Company Information ò General Information ò Human Resource Management �� Company Structure . �� Training and Development

�� Performance Appraisal

�� Compensation

Literature Review ò Human Resource Management

�� Training and Development

�� Performance Appraisal

�� Compensation.

Problem Statement

Gap Analysis




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This study is undertaken to one department of a local company in Cambodia.

Because the research period is short, we will not study other factors that influence the company performance such as Motivation, Communication, Salary, Healthy and Safety and Marketing and Accounting. Beside, we have some difficulties of our research such as company secret or incomplete information and the information collection is limited due to the time constraint.

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To do a research successfully, it depends on the main sources of data ò Primary data

�� In-dept interviews with company managers �� Direct interview with the employees ò Secondary data �� Annual reports and other publications of the company �� Official documents and reports

� General information outside of company

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All information will be returned to company and we will make some recommendation as a result of our research study. That will enable the company to make more profit and gain more confidence from its customers in everywhere.

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This research is organized in 5 chapters: Chapter 1: Introduction Chapter 2: Literature Review Chapter 3: Research Framework Chapter 4: Current situation of the company Chapter 5: Discussion of finding and recommendation




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Encompasses those activities designed to provide for and coordinate the human resources of an organization. The human resources (HR) of an organization represent one of its largest investments. Human resource management is the management of various activities designed to enhance the effectiveness of an organization’s work force in achieving organizational goals. The value of an organization’s human resources frequently becomes evident when the organization is sold. Often the purchase price is greater that the total value of the physical and financial assets. This difference, sometime called goodwill, partially reflects the value of and organizations often make other sizable investments in their human resources. Recruiting, hiring and training represent some of the more obvious examples. Human Resource Management is a modern term for what has traditionally been referred to as personnel administration or personnel management. However, some expert believe human resource management differs somewhat from traditional personnel management. They see personnel management as being much narrower and more clerically oriented that human resource management. For the purposes of this book, we will use only the term human resource management.

The HRM Process:

The requirements for the workforce of the future are likely to be far wider and far more demanding that in the past. Employees will increasingly need to be:

- Creative - Flexible - Multi-skilled - Co-operative (good team players) - Confident, Quality oriented - Knowledgeable about the business, Customer orientated.

Any human resource strategy for the future must address the question “what sort of people will our organization need?” Once this question is answered, a strategy to meet these needs can be established. It is helpful to view the human resource department as providing three types of assistance: (1) specific services, (2) advice, and (3) coordination.

Human

Resource

Planning

Staffing

Development

And

Evaluation

Maintain

Effective

Workforce

Relationship

Compensation




Human resources

Areas Improved/increased:

• Quality of work life

• Productivity

• HR satisfaction

• HR development

• Readiness for

change

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Training & Organization

Development Development Focus: Identifying, assessing Focus: Assessing healthy

And through planned learning inter and intra-unit relation Helping develop the key com- ships and helping group initiate

Petencies (knowledge, skill, attitudes) and manage change That enables individuals to perform Current or future jobs.

Organization/job design

Union/labor relations Focus: Defining how tasks, Focus: Assuring healthy authority and system will Union organization be organized and integrated

across organizational units and in individual jobs.

Employee assistance

Focus: Providing personal Human resource problem-solving, counseling planning to individual employees. Focus: Determining the

organization’s major human resource needs, strategies

Compensation benefits and philosophies. Focus: Assuring compensation

and benefits fairness and consistency.

Personnel research & Selection & staffing Information systems Focus: Matching people and their

Focus: Assuring a personnel career needs and capabilities

information base. with job and career paths.

Source: American Society for Training and Development. Who perform the human resource functions?

Operating manager, human resource generalist and human resource specialist.




Three Types of Assistance Provided by a Human Resource

Department

òòòòòòòò AAcchhiieevviinngg tthhee BBeesstt ooff EEaasstt aanndd WWeesstt Clearly, the cultural, social and behavioral differences between (ASIA) Japan and the West mean that it would be impossible to transfer Japanese methods as they stand. However, as the following table shows both Japanese and Western approaches have positive aspects and both groups can learn from each other.

Western Training Approach Japanese Training Approach

Emphasis on external training Few businesses schools, mostly in-house, On-the-job training

Training in one department Training in a variety of departments

Specialist career progression Generalist career progression

Managers young, sometimes less Managers rarely under 30 experienced that staff

Managers tend to be remote Managers are part of team,

from staff, act as leaders Understand staff problems and have close relationships

Look at the work performance Consider the whole person’s of employees development and performance

Being in outside trainers and motivators Motivate through building up team spirit

Appraisal systems to evaluate training Few formal appraisals, frequent informal discussion

Training department reports to Training department reports personnel department direct to senior management

Judged by financial status Take a long-team view of profit and Personal progress

Human Resource

Department

Specific Services

Operating

Manager

Coordination

Advice




The Management Development to the Millennium report produced by the British Institute of Management identified from a survey of its members that the key skills required for the year 2001 would be:

� Strategic thinking, facilitating others to contribute � Responding to and managing change � Orientation to total quality customer satisfaction � Financial management � Understanding the role of information and IT � Verbal communication � Organizational sensitivity � Risk assessment in decision making.

It is interesting to note that the majorities of skills are of the “softer” variety rather than the work-based skills that have previously been encouraged. The report also highlighted the methods it identified as being most relevant and appropriate to develop managers for the millennium:

� External courses, Internal courses � Job rotation within organization, Project work � On-the-job training program, Self-managed learning.




TRAINING AND DEVELOPMENT

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Well-trained employees will have the confidence and the competence to produce better-quality goods and services, quicker and with less waste. They are also more likely to be able to suggest and implement improvement in the way work is done and the results achieved. Before we consider this area in more detail, it is important to distinguish between four words, which sometimes cause confusion.

1. What is training?

Training is a systematic process of changing behavior or attitudes of employees to improve the organization’s effectiveness. It is usually accomplished by providing learning experiences or educational opportunities to staff members. Learning is not an end in itself; training should improve job performance. In addition to improving job-related skills, training experiences can also be a significant motivator. In one study of motivations of professionals, the chance to grow and learn was fourth on the list of important motivating factors.

òòòò Training is concerned with the acquisition of a body of knowledge and skills, which can be applied directly to work of a particular type. Changing technology and patterns of work mean that training must be a continuous process throughout a working life. Skills acquired for one job may have to be transferred, modified and supplemented for other jobs. If core skills common to a group of jobs can be identified, flexibility can be enhanced.

òòòò Education is the process of acquiring background knowledge or skills. It is person rather than job or company oriented.

òòòò Development is a course of action designed to enable the individual to realize his potential for growth in the organization. It often relates to future skill demands rather than present tasks.

òòòò Learning is the process through which particular patterns of behavior are ‘taken on board’ (internalized) and become the norm, for an individual, a group or the organization as a whole. Although generally seen as something that happens as a result of education, development or training, it often occurs in spite of them – or by other means together.

2. Training Versus Development

Training Development

Focus Current job Current and future jobs Scope Individual employees Work group or organization Time Frame Immediate Long-term Goal Fix current skill deficit Prepare for future work demands




3. Reasons for Induction: Some of the recognized benefits include: Lower turnover, increased productivity, improved employee morale, lower recruiting

and training costs, facilitation of learning, and reduction of the new employee’s

anxiety.

4. Training and Development

Training and development is a planned effort to facilitate employee learning of job-related behaviors in order to improve employee performance. Experts sometimes distinguish between the terms “training” and “development”: “training” denotes efforts to increase employee skills on present jobs, while “development” refers to effort oriented toward improvements relevant to future jobs.

òòòò Need Analysis is an assessment of an organization’s training needs that is

developed by considering overall organizational requirements, tasks associated with jobs for which training is needed, and the degree to which individuals are able to perform those tasks effectively.

4.1. Training and Development Roles òòòò Senior management

� Responsible for the training and development of executives and managers who report directly;

� Responsible for overall organization development and staff development and succession planning;

� Responsible for ensuring that effective training and development policies and programs are in place throughout the organization.

òòòò Middle managers/Line managers

� Responsible for the training and development of junior managers and other staff who report directly;

� Responsible for the implementation and effectiveness of training and development policies and programs which have been agreed with senior management;

Purpose of Training

Train New

Employees

Train Experienced

Employees

Resolve Specific

Operating

Problems

The Same Basic Training

Procedures Are Used




� Responsible for ensuring that their own technical and management skills and knowledge are current and effective.

òòòò Junior managers/Supervisors

� Responsible for the training and development of the employees in their work group;

� Responsible for the induction and on-job skills training of new employees.

òòòò Training officers

� Assist managers and supervisors in the design and implementation of training and development programs which meet the identified and defined needs of the organization and its staff;

� Organize, or advise on the availability of, off-job courses and programs which meet training needs;

� Develop on-job or in-house training and development program which meet defined needs and objectives;

� Lead training courses and programs in areas of special knowledge or experience;

� Evaluate the effectiveness of training and development programs.

The Balance between New Employee Capabilities and Job

Demands Orientation

New Job

Employee Demands

Capabilities Training

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1. Orientation: is the production of new employee to the organization, their work units, and their jobs. Employees receive orientation from their coworkers, and form the organization. After hiring the employee, the organization begins a formal orientation program. Regardless of the type of organization, orientation should usually be conducted at two distinct levels:

a) Organizational orientation: presents topics for relevance and interest to all employees.




b) Departmental and job orientation: describes topics that are unique to the new employee’s specific department and job.

Higher performance and satisfaction and increased commitment are the anticipated results. In addition, good orientation: Reduces startup costs and time, Reduces

anxiety, Reduces turnover.

1.1. Some Functions on Orientation a) Shared responsibility

b) Organizational orientation: general orientations that present topics of relevance and interest to all employees.

c) Department and job orientation: specific orientation that describes topics unique to the new employee’s specific department and job.

d) Orientation kit: company organization chart, map of the company’s facilities, copy of policy and procedures handbook, list of holidays and fringe benefits, copies of performance appraisal forms, dates, and procedures, copies of other required forms (e.g., expense reimbursement form), emergency and accident prevention procedures, sample copy of company newsletter or magazine, telephone numbers and locations of key company personnel (e.g., security personnel), copies of insurance plans.

e) Orientation length and timing: departmental orientation should also be brief and spread over several days. Job orientation should be well planned and conducted using appropriate techniques.

f) Follow-up and evaluation: the following checklist is useful for determining when OJT is appropriate and what should cover.

Managers should select OJT when:

- Participatory learning is essential, One-on-one training is necessary

- Taking employees out of the work environment for training is not cost-effective, Five or fewer employees need training

- Classroom instruction is not appropriate.

- Equipment and safety restrictions make other training methods ineffective.

- Frequent changes in standard operating procedures allow minimal time for retraining, Work in progress cannot be interrupted.

- The task for which the training is designed for is infrequently performed.

- Immediate changes are necessary to meet new safety requirements.

- A defined proficiency level or an individual performance test is required for certification or qualification.

1.2. What OJT should cover?

- Large or secured equipment, Delicate or calibrated instruments

- Tools and equipment components of a complex system.

- Delicate or dangerous procedures

- Classified information retained in a secured area.




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Training is a learning process that involves the acquisition of skills, concepts, rules, or attitudes to enhance the performance of employees. Generally, the new employee’s manager has primary responsibility for job training. Sometimes this training is delegated to a senior employee in the department. Regardless, the quality of this initial training can have a significant influence on the employee’s productivity and attitude toward the job.

Economic, social, technological, and governmental changes significantly influence the objectives and the strategies of all organizations. Changes in these areas can make the skills learned today obsolete in the future. Also, planned organizational changes and expansions can make it necessary for employees to update their skills or acquire new ones.

2.2. The Training Process

Organizational Analysis

Person Analysis

Feedback Motivation

Reinforcement Transfer of Training

Meaningfulness Establish Objectives

Repetition Consider Environment Impacts

On-the-Job

On- and Off-the-Job

Learning Employee Reactions

Behavior Change Organization Results

2.3. Needs assessment: A systematic analysis of the specific training activities

the organization requires achieving its objectives.

Interviews with employees can be conducted y specialists in the human resource department or by outside experts. Basic questions that should usually be asked are as follows:

1.) What problems is the employee having in his or her job? 2.) What additional skills and /or knowledge does the employee need to better

perform the job? 3.) What training does the employee believe is needed?

A specialist in the human resource department or an outside expert can conduct the focus group sessions. Focus group topics should address issues such as the following:

1.) What skills/knowledge will our employees need for our organization to stay competitive over the next five years?

Task Analysis

Assess Needs

Design Training

Program

Choose Training

Method

Evaluate Training

Results

Off-the-Job




2.) What problems does our organization have that can e solved through training?

The Ingredients of a Good Training Program: According to two training specialists, every training program should be designed along the following lines to maximize retention and transfer learning to the job:

1. Maximize the similarity between the training situation and job situation. 2. Provide as much experience as possible with the task being taught. 3. Provide for a variety of examples when teaching concepts or skills. 4. Label or identify important features of a task. 5. Make sure that general principles are understood before expecting much

transfer. 6. Make sure that the training behaviors and ideas are rewarded in the job

situation. 7. Design the training content so that the trainees can see its applicability. 8. Use adjunct question to guide the trainee’s attention.

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Several methods can be used to satisfy an organization’s training needs and accomplish its objectives. Some of the more commonly used methods include on- the-job and off-the-job training. Job rotation, apprenticeship training, and classroom training.

3.1. On-The-Job Training and Job Rotation

A senior employee or a manager normally gives on-the-job training (OJT). The employee is shown how to perform the job and allowed to do it under the trainer’s supervision.

One form of on-the-job training is job rotation, sometime called cross training. In job rotation, an individual learns several different jobs within a work unit or department and performs each job for a specified time period. One main .For example, when one member of a work unit is absent, another can perform that job.

The advantages of on-the-job training are that no special facilities are required and the new employee does productive work during the learning instruction of the employee to be haphazard or neglected.

In training an employee on the job, the trainer can use several steps to ensure that the training is effective.

• Preparation or the trainee for learning the job

• Breakdown of work into components and identification of key points

• Presentation of the operations and knowledge

• Performance tryout Follow-up

3.1.1. The Learning Curve: the learning curve is an important concept in the design and management of training. People usually make only slow progress in the initial stages of their learning, but then accelerate quite rapidly once the various aspects of the training come together. However, a plateau is soon reached, and progress stalls while the previous learning is consolidated and tested. Further learning will occur, but




trainees need help and support as they cross the plateaus, which can be times of significant frustration and discouragement.

Learning Curve for On-the-Job Training

3.2. Off-the-Job Training

It is often necessary to train employees away from the workplace. Role-playing and in-baskets, which we discussed in conjunction with assessment centers, are often used for training purpose. There are other popular off-the-job training techniques.

A side from initial orientation and skills training programs, most other industry training probably occurs away from the actual job site. Varying in format from a short lecture to an extensive series of seminars, these programs are taught by in-house staff, professional trainers and consultants, or university faculty.

Off-the-job training adds a degree of flexibility to training, which would otherwise be unavailable to many companies. Program can be creatively designed to meet changing needs without being hampered by the lack of on-site resource. Personnel from several company locations can be combined into one training program, and a variety of trainers can be used for different sessions, thus providing individualized expertise. Finally, off-the-job training fosters an environment for learning. Unlike on-the-job training, where the goals of productivity and training are sometimes misconstrued, the primary objective of off-the-job programs is learning.

-- Classroom, Lecture, Vestibule training, Behavior modeling method

-- Conference or discussion, programmed instruction method

-- Computer-assisted instruction (CAI), case study and incidental methods

-- In-basket technique, role playing and multiple role playing methods

-- Management or business games, sensitivity training, simulation method.

3.3. Apprenticeship training

Apprenticeship training is designed to provide workers who are entering the workplace, with comprehensive training in the practical and theoretical aspects of work required n a highly skilled occupation.

1 2 3 4

DESIRED PERFORMANCE

STANDARD

PLATEAU

OUTPUT

BY

DURATION OF EMPLOYMENT




3.4. Classroom training

Classroom training is conducted off the job and is probably the most familiar training method. It is an effective means of imparting information quickly to large groups with limited or no knowledge of the subject being presented. It is useful for teaching factual material, concepts, principles, and theories. Portions of orientation programs.

4. Principles of Learning

Previous sections of this chapter discussed not only how training needs are determined but also how they can be met. The use of sound learning principles during the development ands implementation of these programs helps to ensure that the programs will succeed. The following sections present several principles of leaning.

♦ Motivation to achieve personal goals

The most frequently identified objectives of employees are job security, financially and intellectually rewarding work, recognition, status, responsibility, and achievement.

♦ Knowledge of results (feedback) influences the learning process. Keeping employees informed of their progress as measured against some standard helps in setting goals for what remains to be learned.

It can also helps in deciding when to increase or decrease training or when to change methods.

♦ Reinforcement, Transfer of training, Distributed learning

♦ Flow of the training program, Meaningfulness of the material

♦ Practice and repetition: “Practice makes perfect”, Environmental consideration

♦ Spacing of sessions, Behavioral objectives

♦ Whole or part training, Knowledge of process.

5. Evaluating Training

When the results of the training program are evaluated, a number of benefits accrue. Less effective programs can be withdrawn to save time and effort. Weaknesses within established programs can be identified and remedied.

Steps in the evaluation of Training and Development

Evaluation of training can be broken down in four areas:

♦ Reacting: How much did the trainees like the program?

♦ Learning: What principles, facts, and concepts were learned in the training program?

♦ Behavior: Did the job behavior of the trainees change because of the program?

The following guidelines are offered for evaluating behavioral change.

Evaluation

Criteria Pretest

Trained or Developed

worker Posttest

Transfer to

the job

Follow-up

Studies




- A systematic appraisal should be make of on-the-job performance on a before-and-after basis.

- The appraisal of performance should be made by one or more of the following groups (the more the better): the trainee, the trainee’s superior or superiors, the trainee’s subordinates, the trainee’s peers or other people thoroughly familiar with his or her performance.

- A statistical analysis should be made to compare performance before and after training and to relate changes to the train9ng program.

- The post-training appraisal should be made several months after the training so that the trainees have an opportunity to put what they have learned into practice.

- A control group (one not receiving the training) should be used.

♦♦ Result: What were the results of the program in terms of factors such as reduced cost or reduction in turnover?

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òòòò Understudy assignments: method of on-the-job training, in which one individual, designated is the heir to a job, learns the job from the present jobholder.

òòòò Coaching: method of management development conducted on job that involves experienced managers advising and guiding trainees in solving managerial problems. òòòò Experience: individuals are promoted into management jobs and allowed to learn on their own from their daily experiences.

òòòò Job Rotation: is designed to give an individual broad experience through exposure to many different areas of the organization. The trainee goes from on job to another within the organization, this technique is use for training recent college graduates.

òòòò Special Project: require the trainee to learn about a particular subject.

6.1. Classroom Training

Lectures & Case studies: method of classroom training in which the learner analyzes real or hypothetical situations and suggests not only what to do but also how to do it.

One variation of the case study is the incident method. Form of case study in which learners are initially given the general outline of a situation and receive additional information from the instructor only as they request: role-playing, In-basket Technique, Programmed and Computer-assisted Instruction, Business Games, University and Professional Association Seminars, University and Professional Association Seminars.

7. Evaluation of Management Development Activities

òòòò Assessment Center: Formal method used in training and/or selection and aimed at evaluating and individual’s potential as a manager by exposing the individual to simulated problems that would be face in a real-life managerial situation.

òòòò Organizational Development (OD): organizationwide planned effort managed from the top, with the goal of increasing organizational performance through planned interventions and training experiences.




8. Approaches to Management and Organizational Development

One approach used in management and organizational development is behavior modeling, or interaction management (a method of training in which interaction problems faced by managers are identified, practiced, and transferred to specific job situations).

The sequence of learning activities in behavior moldering involves

• A filmed model or actual demonstration of the skills necessary to solve the problem being studied

• Practice in solving the problem through role playing for each trainee.

• Reinforcement of the correct behaviors in solving the problem during the practice situation.

• Planning by each trainee of how to transfer the skills back to the specific job situation.

99..)) CCaarreeeerr DDeevveellooppmmeenntt

òòòò Career Development an ongoing, formalized effort by an organization that focuses on developing and enriching the organization’s human resources in light of both the employees and the organization’s needs.

òòòò Career Development is an ongoing and formalized effort that focuses on developing enriched and more capable workers.

òòòò Advancement Suggestions focus on the steps you can take to improve your chances of being considered for advancement. The development suggestions are fundamental and provide the necessary base. But the advancement suggestions provide the necessary attitudes and organizational presence.

Development Advancement

1. Create your own personal mission statement 1. Remember that performance in your function 2. Take responsibility for your own direction and is important, but interpersonal performance is g growth. Critical

3. Make enhancement your priority, rather than 2. Set the right values and priorities. advancement. 3. Provide solutions, not problems.

4. Talk to those in positions to which you aspire 4. Be a team player. and get suggestions on how to proceed. 5. Be customer-oriented.

5. Set reasonable goals. 6. Act as if what you’re doing makes a difference

6. Make investment in yourself a priority.

òòòò Career planning process by which an individual formulates career goals and develops a plan for reaching those goals.

From the organization’s viewpoint, career development has three major objectives:

• To meet the immediate and future human resource needs of the organization on a timely basis.




• To better inform the organization and the individual about potential career paths within the organization.

• To utilize existing human resource programs to the fullest by integrating the activities that select, assign, develop, and manage individual career with the organization’s plans.

òòòò Two way support: career development/human resources

Human Resources Structure

Human Resources Structure

Source: Leibowitz Zandy B. Farren Caela and Kaye Beverly L 1989, Designing

Career Development System, Jossey-Bass Inc Publishers, p 41.

òòòò Who Is Responsible for Career Development? The organization, the employee, and the employee’s immediate manager.

òòòò Benefits of the Career Development Process

The saving in reduced staff turnover alone can justify the implementation of this process: Reduce turnover, Improve morale, Improve management, Helps keep HR

management program on track, Differentiates the company.

Performance appraisal

Career path

Individual information

And planning

CAREER

DEVELOPMENT

PROCESS

Development And

Reward

Training, development and education

Compensation and benefit

Strateg

ic plan

nin

g

Forecastin

g

Su

ccession

plan

nin

g

Sk

ills inv

ento

ries Job

des

crip

tio

n

Job p

ost

ing

Rec

ruit

men

t/tr

ansf

er/p

rom

oti

on p

oli

cies

Job

acq

uis

itio

n

An

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mov

emen

t

Org

anizatio

nal

Info

rmatio

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An

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lann

ing




1100.. IImmpplleemmeennttiinngg CCaarreeeerr DDeevveellooppmmeenntt

Successful of this implementing program involves four basic steps at the individual level: (1) an assessment by the individual of his or her abilities, interests, and career goals; (2) an assessment by the organization of the individual’s abilities and potentials; (3) communication of career options and opportunities within the organization; and (4) career counseling to set realistic goals and plan for their accomplishment.




PPEERRFFOORRMMAANNCCEE AAPPPPRRAAIISSAALL SSYYSSTTEEMM

IIIIII..)) PPeerrffoorrmmaannccee AApppprraaiissaall SSyysstteemm

Performance appraisal systems require a coordinate effort between the human resource department and the managers of the organization who are responsible for conducting performance appraisals. Generally, the responsibilities of the human resource department are to:

• Design the formal performance appraisal system and select the methods and forms to be used for appraising employees.

• Train managers in conducting performance appraisals.

• Maintain a reporting system to ensure that appraisals are conducted on a timely basis.

• Maintain performance appraisal records for individual employees.

òòòò The Responsibilities of Managers in Performance Appraisals Are To:

• Evaluate the performance of employees.

• Complete the forms used in appraising employees and return them to the human resource management.

• Review appraisals with employees.

It is not surprising, therefore, that 94 percent of the organization responding to a recent survey indicated that they conducted formal performance appraisals. The same survey also indicated that the proportion of organizations using performance appraisal for more than one purpose increased from 11 percent in 1977 to 30 percent in 1988. Latham and his co-authors identified eight common purposes for which performance appraisals are used:

1. Ensuring mutual understanding of effective performance.

2. Building confidence between employer and employees.

3. Clarifying any misunderstandings regarding performance expectations.

4. Establishing developmental procedures.

5. Allocating rewards, Sustaining and enhancing employee motivation

6. Career planning, Fostering communication and feedback.




Assessing the Value of Performance Appraisal

òòòò Who Conducts Evaluation? Immediate supervisors, Self-appraisal, Peer evaluations, Committee evaluations, Subordinate evaluations

11..)) PPeerrffoorrmmaannccee AApppprraaiissaallss DDeeffiinniittiioonn aanndd UUsseess

òòòò Performance appraisal is the process of defining expectations for employee performance; measuring, evaluating and recording employee performance relative to those expectations; and providing feedback to the employee.

òòòò Performance appraisal is a formal process of providing workers with diagnostic feedback (positive and negative knowledge of results) about their job performance.

òòòò Performance appraisal is the identification, management and the management of human performance in organizations.

Process of determining and communicating to an employee how he or she is performing on the job and, ideally, establishing a plan of improvement.

Degree of accomplishment of the tasks that make up an employee’s job: Determinants of performance, Environmental factors as performance obstacles, Selection of performance appraisal methods.

òòòò Who should be involved in appraisal: There are different options available:

The employee, Peers Employee, peers and team leader manager, Mangers’team leaders, Upwards appraisal.

Job

analysis

Performance

appraisal

Employee

motivation

Employee

development

Management

decision making




Primary Uses of Small Large All

Performance Organization organization organization

Appraisals % % %

Compensation 80.2 66.7 74.9

Performance improvement 46.3 53.3 48.4

Feedback 40.3 40.6 40.4

Documentation 29.0 32.2 30.2

Promotion 26.2 22.8 24.8

Training 5.1 9.4 7.3

Transfer 8.1 6.1 7.3

Discharge 4.9 6.7 5.6

Layoff 2.1 2.8 2.2

Personnel research 1.8 2.8 2.2

Manpower planning 0.7 2.8 1.5




TThhee PPeerrffoorrmmaannccee AApppprraaiissaall PPrroocceessss..

Administrative Actions taken

9

Developmental Action plans Implemented

10

Performance feedback And review session

Help and action Plans made

8

Through, job-related, end-of-period Formal rating

7

Ongoing observation, Monitoring, record keeping,

And rating 4

Day-to-day feedback, coaching, and

counseling 5

Developmental Action plans Implemented

6

Job analysis – the identification and

Definition of appraisal criteria

1

Communication of Performance criteria

To employees 2

Joint development Of performance

Expectation/goals 3




22..)) PPeerrffoorrmmaannccee AApppprraaiissaall MMeetthhooddss

This section will discuss each of the following performance appraisal methods:

• Goal setting, or management by objectives (MBO).

MBO is a goal-directed approach to performance appraisal in which workers and their supervisors set goals together for the upcoming evaluation period.

Consist of establishing clear and precisely defined statements of objectives for the work to be done by an employee: establishing an action plan indicating how these objectives are to be achieved, allowing the action plan, measuring objectives achievement, taking corrective action when necessary, and establishing new objectives for the future.

• Work standards approach.

Method of performance appraisal that involves setting a standard or an expected level of output and then comparing each employee’s level to the standard.

• Essay appraisal.

Method of performance appraisal in which the rater prepares a written statement describing and individual’s strengths, weakness, and past performance.

• Critical-incident appraisal.

Method of performance appraisal in which the raters keeps a written record of incidents that illustrates both positive and negative behaviors of the employees. The rater than uses these incidents as a basis for evaluating the employee’s performance.

• Graphic rating scale.

Method of performance appraisal that require the career to indicate on a scale where the employee rates on factors such as quantity of work, dependability, job knowledge, and cooperatives.

• Checklist.

Method of performance appraisal in which the rater answers with a yes or no a series of questions about the behavior of the employee being rated.

• Behaviorally anchored rating scale (BARS).

Method of performance appraisal that determines an employee’s level of performance based on whether or not certain specifically described job behaviors are present.

BARSs are normally developed through a series of meetings attended by both managers and job incumbents. Three steps are usually followed:

� Managers and job incumbents identify the relevant job dimensions for the job.

� Mangers and job incumbents write behavioral anchors for each job dimension. As many anchors as possible should be written for each dimension.

� Mangers and job incumbents reach a consensus concerning the scale values to be used and the grouping of anchor statements for each scale value.




� Scale values: 1. Unacceptable, 2. Very poor, 3. Below average, 4. Average, 5. Good, 6. Very good, 7. Excellent.

Anchor: Excellent: Develops a comprehensive project plan, documents it well, obtains required approval, and distributes the plan to all concerned.

Unacceptable: Seldom, if ever, completes project, because of lack of planning and does not seem to care. Fails consistently due to lack of planning and does not inquire about how to improve.

• Forced-choice rating.

• Ranking methods.

-- Alternation ranking, paired comparison ranking, forced distribution.

3.) Potential Errors in Performance Appraisals

òòòò Leniency: Occurs in performance appraisal when a manager’s rating are grouped at the positive end instead of being spread throughout the performance scale.

òòòò Central tendency: tendency of manager to rate most employees’performances near the middle of the performance scale.

òòòò Recency: tendency of manager to evaluate employees on worked performed most recently, usually one or two months prior to evaluation.

òòòò Halo effect: occurs when a rater allows a single prominent characteristic of an employee to influence his or her judgement on each separate item in the performance appraisal.

4. Sources of Ineffective Performance

Organization policies and practices Personal problems

• Ineffective job placement l Stress

• Insufficient job training l relationship problems

• Ineffectual employment practices l financial worries

• Permissiveness with enforcing policies or l emotional disorders (including depression,

Job standards guilt, anxiety, fear)

• Heavy-handed management l conflict between work demands and family

• Lack of attention to employee needs or demand

Concerns l Physical limitations including handicaps

• Inadequate communication within l Low work ethic

organization l Other family problems

• Unclear reporting relationships l Lack of effort

• Lack of clear job descriptions l Immaturity

l Drugs and alcohol

l Health concerns




Job Concerns External Factors

• Unclear or constantly changing work l Industry decline or extreme competition

Requirements l Legal constrains

• Boredom with job l Conflict between ethical standards and job

• Lack of job growth or advancement demands

Opportunities l Union-management conflict

• Role ambiguity

• Management employee conflict

• Problems with fellow employees

• Unsafe working conditions

• Unavailable or inadequate equipment or

Materials

• Inability to perform the job

• Excessive workload

• Insufficient workload

• Lack of job skills

5.) Providing the Feedback through the Appraisal Interview

To prepare the interview, the manager should answer the following questions:

• What result should the interview achieve?

• What good contribution is employee making?

• Is the employee working up to his or her potential?

• Is the employee clear about the manager’s performance expectation?

• What training does the employee need to improve?

• What strengths does the employee have that can be built on or improved?

In addition, several basic guidelines need to be remembered in conducting the interview:

• The manager must know the employee’s job description.

• The evaluation must be based on the employee’s performance and not on his or her personality.

• The manager must be positive and build on the employee’s strengths.

• The manager must be candid and specific.

• The manager must be listen to the employee as well as presenting his or her own views.

• The manager must elicit employee feedback on how to improve performance?

Some of the more important factors influencing the success of failure of appraisal interviews are the following:




• The more employees are allowed to participate in the appraisal process, the more satisfied they will be with the appraisal interview and with manager, and the more performance improvement objectives are to be accepted and met.

• The more a manager uses positive motivational techniques (e.g., recognizing and praising good performance), the more satisfied the employee is likely to be with the appraisal interview and with the manager.

• The manual setting by the manager and the employee of specific performance improvement objectives results in more improvement in performance than does a general discussion or criticism.

• Discussing and solving problems that may be hampering the employee’s current job performance improve the employee’s performance.

• The more thought and preparation both the manager and the employee devote before the appraisal interview, the greater the benefits of the interview.

• The more the employee perceives that performance appraisal results are tied to be organizational rewards, the more beneficial the interview will be.

Many of the variables that have been identified and associated with positive outcomes from performance appraisal interviews are behaviors and skills that can be taught to managers responsible for conducting the interviews. The human resource department should play a key role in the development and implementation of these training programs.

6. Developing performance Improvement Plans

• Where are we now? Is answered in the performance appraisal process.

• Where do we want to be? This requires the evaluator and the person being evaluated to mutually agree on the areas that can and should be improved.

• How does the employee get from where he or she is now to where he or she want to be? This component is critical to the performance improvement plan. Specific steps to be taken must be agreed on. The steps may include training the employee will need to improve this or her performance and should also include how the evaluation will help the employee achieve the performance goals.

7. Introducing a New Approach to Appraisal

Key stages in implementation:

• Consider changing the same ‘appraisal’ to one with positive connotations in your organization (examples include People Development. Personal Development Planning etc)

• Find our what people think of the current system and what they would like to see in its place, Communicate the changes throughout the organization

• Consult everyone who would be involved

• Train all those who will carry out the appraisals

•• Set up workshops, focus groups and attitude survey to ensure participation and support.




TThhee OOrrggaanniizzaattiioonnaall RReewwaarrdd SSyysstteemm

IIVV..)) TThhee OOrrggaanniizzaattiioonnaall RReewwaarrdd SSyysstteemm

Concerned with the selection of the types of rewards to be used by the organization.

11..)) OOrrggaanniizzaattiioonnaall RReewwaarrddss

Rewards that result from employment with the organization; includes all types of rewards, both intrinsic and extrinsic.

òòòò Distinguish Between Intrinsic and Extrinsic Rewards.

Intrinsic rewards: reward internal to the individual and normally derived form involvement in certain activities or tasks.

Intrinsic rewards: rewards that are controlled and distributed directly by the organization and are of a tangible nature.

òòòò List Several Desirable Preconditions for Implementing A Pay-For-

Performance Program.

Several preconditions have been identified for implementing a successful pay-for-performance program. These include (1) trust in management; (2) absence of performance constraints; (3) trained supervisor and managers; (4) good measurement systems; (5) ability to pay; (6) a clear distinction among cost of living, seniority, and merit; (7) a well-communicated total pay policy; and (8) a flexible reward schedule.

òòòò Define Job Satisfaction and List Its Five Major Components.

Job satisfaction is an employee’s general attitude toward the job. The five major components of job satisfaction are (1) attitude toward the work group, (2) general working conditions, (3) attitude toward the company, (4) monetary benefits, and (5) attitude toward supervision.

New ways of working and new methods of appraisal are having an impact on remuneration packages and any organization, which seeks to motivate its staff needs to goals. It is important to consider the question not only of money, but also of other rewards: Financial rewards, Employee and fringe benefits, Non-financial rewards.

The second aspect of motivation may be called extrinsic, what is done for people to motivate them, aspect such as bonus pay, but it also include non-financial rewards such as praise and recognition. Extrinsic motivators currently in use include:

• Praise (verbal recognition) l Team recognition (weekends away)

• Long-service awards l Titles

• Sabbaticals l Office furniture

• Work-related trips abroad l Secretarial support

• Extra holiday l Equipment (mobile phones,

• Travel personal computers etc)




• Voucher schemes l Flexible hours

• Catalogue schemes l Degree of supervision

• Luxury gift items l Parking space, promotion

22..)) EEmmppllooyyeeee CCoommppeennssaattiioonn

Compensation and pay are not synonymous terms. Compensation refers to all the extrinsic reward employees receive in exchange for their work. Pay refers only to the actual dollars employees receive in exchange for their work. Usually compensation is composed of the base wage or salary, any incentives or bonuses and any benefits.

òòòò Pay: refers only to the actual dollars employees receive in exchange for their work.

òòòò Base wage or salary: hourly, weekly, or monthly pay that employees receive for their work.

òòòò Incentives: rewards offered in addition to the base wage or salary and usually directly related to performance.

òòòò Benefits: rewards employees receive as a result of their employment and position with the organization.

òòòò Team-Based Pay can also include options for rewarding:

• Increased productivity

• Increased profits for the organization

• Improvement suggestions.

If an organization wants to promote job rotation, it will be unlikely to realize it unless pay for grading can be reassessed, as there will be few volunteers for a system that personalizes them for attempting to widen their experience and knowledge.

There is an increasing need to focus on person rather than the job.

Component of Employee Compensation

Base Wage or Salary Incentives Benefit

Hourly wage Bonus Paid vacation

Weekly, monthly, or annual salary Commissions Health insurance

Overtime pay Profit sharing Life insurance

Overtime pay Piece rate plans Retirement pension

In short, the compensation for individuals in design firms is made up of four components:

- Base salary or hourly rate of pay

- Overtime compensation, if paid at all.

- Bonus or incentive compensation if paid at all and fringe benefits.




òòòò Job evaluation is a systematic process of establishing the relative worth of jobs within a single organization in order to determine equitable pay differentials among jobs.

òòòò Point factor method is a job evaluation approach in which points are designed to jobs on the basis of the degree to which the jobs contain selected compensable factors

3. Model of the Consequences of Pay Dissatisfaction Designing the Pay Structure

4. Pay secrecy

Many organizations have a policy of keeping pay-related information secret. This includes information about the pay system as well as individual pay received. The justification for pay secrecy is usually to avoid any discontent that might result from employees knowing what everybody else is being paid. Further justification is that many employees, especially, high achieves, feel very strongly that their pay is nobody else’s business.

Joining a union

Increase performance

Strikes

Grievances

Search for Higher-paying

job

Lower attractiveness

Of job

Desire for more pay

Pay Dissatisfaction

Absenteeism

Turnover

Job

dissatisfaction

Absenteeism

Tardiness

Psychological

withdrawal

Visit to

doctor

Poor mental

health

Source: Adapted from Edward E. Lawler

III, Pay and Organization Effectiveness




On the other hand, pay secrecy makes it difficult for employees to determine whether pay is related to performance. Also, pay secrecy does not eliminate pay comparisons; it may cause employee to overestimate the pay of their peers and underestimate the pay of their supervisors. Both situations can unnecessarily create feelings of dissatisfaction.

A good compromise on the issue of pay secrecy is to disclose the pay ranges for various job levels within the organization. This approach clearly communicates the general ranges of pay for different jobs, but it does not disclose exactly what any particular employee is making.

5. Pay Equity

The equity theory of motivation basically holds that employees have a strong need to maintain a balance-between what they perceive as their inputs to their jobs and what they receive from their jobs in the form of rewards. In this theory, employees who perceive inequities will take action to eliminate or reduce them. For example, if an employee believes he or she is underpaid, that employee will likely reduce expended effort by working more slowly, taking off early, or being absent. Similarly, if an employee believes she or he is being overpaid, that employee is likely to work harder or for longer hours.

Pay equity concerns whether employees believe they are being fairly paid. There are several dimensions of equity to consider in looking at pay equity.

òòòò Internal equity: addresses what an employee is being paid for doing a job compared to what other employees in the same organization are being paid to do their jobs.

òòòò External equity: addresses what employees in an organization are being paid compared to employee in other organizations performing similar jobs.

òòòò Individual equity: addresses the rewarding of individual contributions; is very closely related to the pay-for-performance question.

òòòò Organizational equity: addresses how profits are divided up within the organization.




CCHHAAPPTTEERR II CCOOMMPPAANNYY PPRROOFFIILLEE

3.1. Company Background

Cambodia has drawn a lot of local and foreign investors to come to invest after

economic reform. The East Asiatic Company Ltd. A’S is one of those, which come to invest in Cambodia.

In August 1992 EAC opened its representative office in Phnom Perth that it is under the supervision of EAC in Vietnam. EAC in Cambodia is just the representative and service company, so it needs to seek a local partners to perform its business. Heng Heng Company is the local partner of EAC.

It imports many kinds of products to Cambodia. EAC is a global company that

operates in many countries over the world. Marlboro is the major product of EAC, which is under franchise from Philip Morris .EAC, is different from EAC in Taiwan, Malaysia, Singapore and Vietnam, which has their own Marlboro factory.

Although EAC in Cambodia is under the control of EAC in Vietnam, but it

does not import Marlboro product from Vietnam: it imports directly from Philip Morris company through Heng Heng Company.

3-2 Company Structure Today EAC in Cambodia has 46 employees:

♦ Managers : 2 ♦ Salesperson : 24 ♦ Promoters : 14 ♦ Administrator : 5 ♦ Advisor : 1

3-3 Company Location:

EAC




Note: A- Princess Hotel B- Vimean Tep Cinema C- Taiwan Hotel D- Representative Offices of the East Asiatic Company Ltd. A/S No. 35, Street 222,

Phnom Penh, Kingdom of Cambodia.

3.4. Relationship between EAC and Philip Morris: EAC in Cambodia is the representative office, so it can not import any product from abroad. Today, EAC in Cambodia was just service Company for Marlboro Product and Heng Heng Company imports directly from Philip Morris. EAC Cambodia is in charge of conducting marketing research, sales planning and spending on sale force. For the cost of advertisement on TV, Philip Morris Corporation sponsors billboard and some other ads in special occasion. In sale procedure, EAC Cambodia will conduct marketing research to find out the exact number of quantity and then make a proposal to Heng Heng to place an order to Philip Morris. After Heng Heng import Marlboro to Cambodia, it will provide to EAC for sales and services.

3.5 Vision, Mission, Value of the Company

ò Vision: we exist to continuously deliver the best solution to bring leading brand to the market.

ò Mission: We will be recognized as the leading, most advanced and best managed consumer product service system in Asia and we will:

- Become a US$ 2 billion company, consistently delivering profit commitment.

- Created value for our partners becoming the preferred choice of leading brand owner.

- And build a winning team of committed people who feel a strong sense of pride and belonging.

And because of these factors, by the year 2000 we will be a company which superior people aspire to join and are proud to serve.

- We will be the service system against which the industry benchmarks.

- We will be sought after equal terms as preferred joints venture partners.

- And the investment community will acknowledge EAC as an attractive vehicle for investing in Asia, as a result of our activities.

Thus, the constellation of superior people, industry leading service systems and category leading brand portfolio will ensure the EAC is well poised to enter into the next millennium.




ò Eight Core Values

¬ Strong Determination: to find the best way, we conduct competitive analysis to find out what their transactions is based on company capacity, to find the best way.

Integrity: We act sincerely, objectively, and in good faith action, and we deliver on our commitment.

®®®® Respect: We act in a professional and courteous manner at all times, and respect the importance and obligation of family.

¯ Openness: We encourage free expression of idea for the benefit of the company.

° Team work: (working together inside the company) -

We belief in the mutual benefits of cooperation (win-win) and share responsibility

and rewords.

± Partnership: (working together inside the company)

We listen and respect our partners views and interest and treat our partner fairly and

share rewards.

² Excellence in Service: We recognize that service satisfaction is the essences

of our businesses and we are committing to consistently meeting our customer’s

requirement.

³ Close Relation with Customer: Customers and the staff of the company

always be close for our daily transactions.

3-6 Environment and Situation Analysis:

3.6.1 External Analyses

A. Market Analysis:

Today, cigarette industrial is growth with high competition. There are a lot of

smokers (the young and old). But marketing activity can reach only a small

number of target markets (the media cannot reach). So fierce marketing activity

is only in Phnom Penh and some main provinces which the media can reach.

This led the products or service cannot reach everywhere.

B. Competitive Analyses:

The development of human being in the society has encouraged the business

people to try to satisfy consumer. We also see that cigarette industrials are also

growth compare to other industrials.

For cigarette product, it fails into 3 categories: high-class cigarette. Medium

cigarette and low class cigarette.

For Marlboro product is rated as high-class cigarette.




The major competitors faced by EAC are 555. Mild Seven and Dunhill. Those

competitors are increasing their action in selling product through extending

distribution channel. Increasing ads. Sponsoring in some special occasions such

as sport, concert in an attempt to increase their market share.

Therefore, EAC should understand clearly about their competitors. What they

are doing and what they are going to do next to gain profits:

C. Consumer Analyses: Because of economic downturn in recently, it affect

the income of the consumer: The decrease of their revenue makes them easy to

switch to other product while the product did not satisfy them. We should

specify our target market, what kind of consumer should we focus on. What do

they want, where they buy the product, when, arid how to buy. Knowing what

consumer needs is good for company to satisfy them.

3.6.2 Company Analyses:

1. Company Performance: EAC is the service company selling well known

and leading brand. In fact, it is selling Marlboro cigarette (the product of

Philip Morris which is known as famous company) which has high quality and

standard tastes arid it is classified as the number one cigarette in the United

State and over the world.

Until now, EAC Company transact in some areas include Phnom Penh.

Sahanouk. Battambang. Kampongcham and some other provinces to increase the distribution channel. EAC have contributed to social work such as keeping the city cleaned and some other activities. EAC brought some expert designers from Philip Morris to design the attractive stall and give it to those who sell book and newspapers. Moreover, EAC support Marlboro umbrella to roadside

stores and send cleaning agent to umbrella to roadside stores and sending cleaning agent to clean those umbrellas. EAC also be a pioneer. EAC create the sound truck. Football sponsoring. Motor race, which those activities are pirated.

2. Marketing Strategy

In order to achieve company’s vision and mission, the company should focus on consumers by using the best ways to satisfy consumers and keep them loyal to the product. Company must analyze the strengths and weakness and opportunities to attack on the weakness on its competitors.

3. Target Market:

EAC segment the market into two targets. 18-5 years old and over than 25 years old customers. EAC focus strongly on customers aging I18-25 because there are a lot of customers in this range. On the other hand. EAC segment their market based on the customer‘s outcome, it means that Marlboro product referred to consumer who has high income.




CHAPTER IV DISCUSSION OF

FINDING

Training and Development As a result of our research we will be able to find out what is the current situation of the East Asiatic Company. After 5 months of internship we could evaluate that, refer to the daily transaction, there are some factors, which is applied according to the theory, and other was practiced according to the job demand.

1. Training

However, the company always provide training program to the new recruits, but there is still some factor was not applied such as: 1.1. Training Needs The company does not ascertain the:

- Purpose of training - Training to new employee - Resolve specific operating problem - Train experienced employees - The same basic training procedures are used

1.2. Training Program

There are some reasons for fulfilling the gap of the company such as: ability evaluation, benefit evaluation and objective of each employee, the relationship between the job and the opportunities, job consultation that will determine the objective and specific plan in completion of the job.




National Institute of Mangement

Questionaire for Personnel Mangemnet In East Asiatic Company (EAC)

I, HENG BUNSONG, Student at 4th year, promotion 13 of the National Institute of Management, and I am currently doing internship for a completion Bachelor of Business Administration within a field of Management. I have chosen a topic on “Strengthening an Effective Employee Performance” in your Company and I hope that you will answer all questions below, Thank you. 1.) How long did your work for East Asiatic Company?

r 3-6 months r 7 months-1 year r More than 1 year 2.) How often do your change your job?

r Frequently r Sometimes r Never 3.) What is your educational data and training?

r Below Secondary School

r Below High School

r Finish High School

r University r After University (Post Graduate)

r Other…………………… 4.) What is your occupation in EAC?

r Position…………………………. 5.) Do you have any additional skills?

r Computer r English r Chinese

r Thai r Technical Skill r Others……………. 6.) A. When you were recruited, does the company provide any training?

r Yes (Continue on Part B) r No (Please Skip and Answer Q13)

B. How long did you take in training program?

r Less than 3 months r 3-6 months r More than 1year 7.) What type of training program did you attend?

r Theory r On-the-Job training r Others……………




8.) A. How did you satisfy your present job?

r Very satisfy r Satisfy r Normal r Dissatisfy B. If you dissatisfy, what type of reasons do you have?

r Not enough training r Inadequate salary r Poor working

condition r Poor working environment r Others………

9.) How effective was the training applied in your company?

r Excellent r Good r Medium r Poor 10.) After you were trained, do you feel that you will:

r Able to work r Hesitate to work r Poor working result r Others…………………. 11.) If there is still disability after training, What is your company resolution?

r More training r Keep working

r Fire r Others……………… 12.) Did your ever make any achievements?

r Yes r No 13.) What kinds of rewards did you ever receive?

r Money r Souvenir reward r Office equipment r Promotion

r Holiday r Nothing r Others……………. 14.) What kinds of rewards will you satisfy after providing?

r Money r Souvenir reward r Office equipment r Promotion

r Holiday r Nothing r Others……………. 15.) What is your satisfaction to those rewards?

r Very Satisfy r Satisfy r Normal r Dissatisfy 16.) What is your impression to the company’s performance appraisal?

r Excellent r Fair r Medium r Poor 17.) What is the relationship between the employee and employee?

r Excellent r Good r Medium r Poor 18.) What is the relationship between the employee and employer?

r Excellent r Good r Medium r Poor 19.) What is your impression to the company’s personnel management?

r Excellent r Good r Medium r Poor




20.) Do you have any recommendation?

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ÉÉÉÉÉÉÉÉkkkkkkkkssssssssaaaaaaaarrrrrrrreeeeeeeeyyyyyyyyaaaaaaaagggggggg RREEFFEERREENNCCEESS

1.) Lloyd L. Byars and Leslie W. Rue, HUMAN RESOURCE MANAGEMENT, Fifth Edition. A division of The McGraw-Hill Companies.

© Copyright The Mc Graw-Hill Companies, Inc., 1997. http://www.mhcollege.com

2.) Laid W. Mealiea, Gary P. Latham, SKILLS FOR MANAGERIAL SUCCESS.

Theory, Experience, and Practice, © Richard D. Irwin, a Times Mirror Higher Education Group, Inc. Company, 1996. 3.) SHEILA CANE, KAIZEN STRATEGIES FOR WINNING THROUGH PEOPLE, How to create a human resources program for competitiveness & profitability. FINANCIAL TIMES PITMAN PUBLISHING, Copyright ©1996.

4.) PENNY HACKETT, SUCCESS IN MANAGING PEOPLE, MA, PhD,

and FIPD. New Edition as Success in Managing People, © Penny Hackett 1996. 5.) KRETNER, MANAGEMENT. 6th Edition, Copyright © 1995 by Houghton Mifflin Company. All rights reserved. 6.) Gloria E. Bader, Audrey E. Bloom, Make Your Training Results Last. High Impact Training Series, A Practical Guide To Successful Training follow-

through. © 1994, Richard Chang Associates, Inc., USA. 7.) Alan R. Nankervis, Robert L Compton & Terrence EM c Carthy.

STRATEGIC HUMAN RESOURCE MANAGEMENT. Copyright © 1993. 8.) KATHRYN M. BARTOL & DAVID C. MARTIN, MANAGEMENT. International, Second Edition. Copyright © 1991. 9.) RICHARD M. HODGETTS, FRED LUTHANS. INTERNATIONAL MANAGEMENT. International Edition, Copyright © 1991 by McGraw-Hill, Inc. Management Series of McGRAW-HILL INTERNATIONAL EDITIONS. 10.) RICHARD RUDMAN, HUMAN RESOURCES MANAGEMENT IN NEWZEALAND, Context and Processes. © 1991. 11.) Mark C. Zweig and Associates Natick. Massachusetts, HUMAN RESOURCES MANAGEMENT, The Complete Guidebook for Design Firms. Copyright © 1991 by John Wiley & Sons, Inc.

12.) Marc G. Singer (James Madison University), HUMAN RESOURCE

MANAGEMENT. Copyright © 1990 by PWS-KENT Publishing Company.




13.) Brother Herman E. Zaccarelli, C.S.C, TRAINING MANAGERS TO TRAIN, A Practical Guide to Improving Employee Performance, Effective Training Strategies and Techniques. Copyright © 1988 by Brother Herman E. Zaccarelli, C.S.C.

14.) DR. RAMON J. ALDAG & DR. TIMOTHY M. STEARNS,

MANAGEMENT. Copyright © 1987 by SouthWestern Publishing Co. Cincinnati, Ohio.

15.) A Series of Books provided by the Human Resource Management Training Course. Taught by Mr. Kenneth Kee (Human Resource Manager of SL

International Limited). In the period of 11 September 1999 to 08 January 2000.

Documents

National Institute of Management€¦ · National Institute of Management 2 Strengthening an Effective Performance Promotion 13, Management