1 international program on enhancing entrepreneurship in sme development and export consortia...

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1 International Program on Enhancing Entrepreneurship in SME Development and Export Consortia Business Development Service and Human Resource Management Mekong Institute (MI) Residential Training Centre in Khon Kaen University campus, Khon Kaen, northeast Thailand.. By Dr. Nittana Southiseng Shinawatra International University 24 August 2010

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Page 1: 1 International Program on Enhancing Entrepreneurship in SME Development and Export Consortia Business Development Service and Human Resource Management

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International Program on Enhancing Entrepreneurship in SME Development and Export Consortia

Business Development Service and Human Resource Management

Mekong Institute (MI) Residential Training Centre in Khon Kaen University campus, Khon Kaen, northeast Thailand..

By

Dr. Nittana Southiseng

Shinawatra International University

24 August 2010

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Human Resource Management

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Objectives

Understand HRM functions in an organization Identify key tasks of HRM in motivating

employees Learn techniques of driving employees to a high

performance level Discuss and share experiences of effective team

work

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Outline

Session I: Introduction of HRM Important tasks of HRM in SME Discussion

Session 2: Important tasks of HRM in SME HRM issues in modern organization Discussion and conclusion HRM ideas for further considerations

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Major Business Factors5

Capital

Human Market

You can not get successful without each of these factors

Government agencies

Privatesector

Non-governmentagencies

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Introduction

Managing people in an entrepreneurial organization is challenging, but rewarding

With a certain size of a venture, the entrepreneurs will be likely to have HRM specialist or department

HRM roles that business owners should know To what certain degree they are important for the

company? How important are people to the company’s success? How are success cultivated through HRM?

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Human Resource Management

HRM encompasses activities which are designed to

provide for & coordinate the human resources of the organizations, and also

facilitates the most effective use of people (employees) to achieve organization’sorganization’s and

individual’sindividual’s goals.

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Assistances Provided by HR Department8

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HR Managers and Line Managers

HR Managers Services of employee

record, handling initial phases of orientation

Provide advices of disciplinary, equal employment opportunity, assistance

Assist to develop a plan for individual development, motivation

Line Managers Provide basic data of

employees in department plan

Imply the HR strategies Involve in developing

structure of the employees’ job, motivation, and development

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Four Important Tasks of HRM in SMEs

1. Hire the right employees and constantly improve their skills.

2. Motivate workers to higher levels of performance.

3. Build a supportive organizational culture and structure that enable the company to reach its potential.

4. Plan for “passing the torch” to the next generation of business leadership.

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Job Analysis

Job SpecificationJob Description

HRP

Recruitment

Section

Hiring the Right People

Job Analysis

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Job Analysis

Job AnalysisA process of obtaining information about jobs Determining duties, tasks, or activities of a job.To create job descriptions & job specifications.

How?Using available recordsCommunicate to the key persons a in specific jobObservationStudy and benchmark to other company

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Job Analysis

Job SpecificationJob Description

HRP

Recruitment

Section

Hiring the Right People

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Job Description

A written summary of nature and requirement of a job

Typical lists of the general tasks, or functions, and responsibilities of a position

Job Description

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Job Specification

Describes the competency, educational, and experience qualifications the incumbent must possess to perform a job

Job specification

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How can a job be well-structured to enhance the employee’s performance?

What kinds of behaviors are needed to enhance performance of a job?

What kind of knowledge & experience is best suited for the job?

Job Analysis Questions

How How much time is takenmuch time is taken to complete one task? to complete one task?

Which tasks can be grouped together?

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Sample of Job Description and Job Specification

Job Title: SupervisorDivision: PlasticsDepartment: ManufacturingName: .................... Job Analyst: .....................

Job SummaryThe SUPERVISOR works under the direction of the manager: Plans goals; supervises the work of employees; develops employees with feedback and coaching; maintains accurate records; coordinates with others to achieve optimal use of organizational resources.

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Sample of Job Description and Job SpecificationCon’t

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Job Duties and Responsibilities:

1. Plans goals to achieve; monitors progress of objectives, adjusts plans as necessary; allocates resources according to priority

2. Supervises the work of employees; provides clear instructions and explanations to employees; schedules work for employees; monitors employees’ performance.

3. Develops employees through direct performance feedback and job coaching; conducts performance appraisals; provides employees with recognition when performance is excellent; corrects employees promptly when their performance fails.

4. Maintains accurate records; processes paper work on a timely basis; documents important aspects of decisions and actions.

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Job Requirements1. Ability to apply basic principles and techniques of

supervision Knowledge of principles and techniques of supervision Ability to plan, organize, and lead the activities of others Ability to get ideas accepted and to guide a group or

individual to accomplish the task2. Ability to express ideas clearly in both written and oral

communications.Minimum Qualifications Twelve years of general education or equivalent; and one year

supervisory experience. Or Substitute 45 hours classroom supervisory training for

supervisory experience.

Sample of Job Description and Job SpecificationCon’t

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Job Analysis

Job SpecificationJob Description

HRP

Recruitment

Section

Hiring the Right People

HRP

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Human Resources Planning21

Human Resources Planning (HRP) Process of determining the employee needed by an

organization To ensure the organization has the right number of

qualified people with the right jobs at the right time To match the supply of people internally & externally Help identify specific people to fill in key positions

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Human Resource Planning

Product Product DemandDemand

Labor Labor ProductivityProductivity

Labor Demand Labor Supply

Internal Internal Labor MarketLabor Market

External External Labor MarketLabor Market

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What to do if What to do if Labor demand exceeds labor supply?Labor demand exceeds labor supply?

What to do if labor supply exceeds labor demand?

What to do if What to do if Labor demand equals labor supply?Labor demand equals labor supply?

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Human Resource PlanningHuman Resource Planning

• Training or retraining• Promotion from within• Recruitment from outside• Subcontracting• Use of overtime

• Pay cuts• Reduced hours• Work sharing• Voluntary early

retirements• Inducements to quit• Layoffs

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Job Analysis

Job SpecificationJob Description

HRP

Recruitment

Section

Hiring the Right People

Recruitment

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Recruitment

The process of generating a pool of qualified candidates for a particular job.

An effective recruitment effort should create a pool of qualified applicants.

Internal recruitment Recruiting the existing

employees in the organization to fulfill job vacancies

External recruitment recruiting new employees

outside the companies to fulfill job vacancies

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External Recruiting Sources

Media Advertising E-recruiting

Employment Agencies

Special Events Recruiting

College RecruitingSummer Internships

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What are advantages and disadvantages of internal and external recruitment?

Internal Recruitment

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External Recruitment

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Job Analysis

Job SpecificationJob Description

HRP

Recruitment

Section

Hiring the Right People

Section

Who should be selected?

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Selection Process

JOB

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Factors in Selection Decisions

“Can Do”______________________________

• Knowledge• Skills• Abilities

“Can Do”______________________________

• Knowledge• Skills• Abilities

“Will Do”______________________________

• Personality• Values

• Motivation

“Will Do”______________________________

• Personality• Values

• Motivation

Job PerformanceJob Performance

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Let’s form 4 groups with new members and work on the given case

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Discussion

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Job Analysis

Job SpecificationJob Description

HRP

Recruitment

Section

Training & Development

New Employees

Orientation

Current Employees

Orientation

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Orientation

Introducing new employees to their new workplace environment, colleagues, policy of the company etc.

Helps new employees to: Learn more about the company Learn what is expected of them in the job Reduce the initial anxiety of a transition Become familiar with co-workers Learn about work rules and personnel policies

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Job Analysis

Job SpecificationJob Description

HRP

Recruitment

Section

Training & Development

New Employees

Orientation

Current Employees

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Training and Development

Training Provide employees with specific skills to improve their

performance Support the employees to acquire new capability and

enable to utilize their SKAs to fulfill their responsibility and potentials

Effective training can improve morale, change their attitudes,

organization’s culture, increase an organization's potential.

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Samples of Training Methods

On-the-job training Shows the employee how to perform the job & allows him/her to

do it under the trainer’s supervision Job rotation (Cross training)

Requires an employee to learn several different jobs in a department, & performs each job for a specified time period

Apprenticeship training Giving a comprehensive training in both practical and theoretical

aspects, Combines both on-the-job and classroom training Virtual classroom

Is an online teaching & learning environment such as: chat rooms, desktop video conferencing, websites, email…

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Discussion

Training is a good start for the business owner who plans to invest on human resource development of the business. But training provision is somehow expensive. Thus, many business owners are reluctant to invest more on their human resource development.

What should HR managers do to convince the business owner to invest on HR training and development?

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Four Importance of HRM in SMEs

1. Hire the right employees and constantly improve their skills.

2. Motivate workers to higher levels of performance.

3. Build an organizational culture and structure that enable the company to reach its potential.

4. Plan for “passing the torch” to the next generation of leadership.

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Motivating Workers

Rewarding and recognizing the employees’ achievement

Reinforce positive practices and apply punishments where is needed

Empowering and giving authority in making decision

Job design Job rotation, job enlargement, job enrichment, flextime,

flexplace, telecommuting Feedback and learning loop

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Performance Appraisal

Evaluating and communicating to an employee how his or her work performance is, and establishing a plan for improvement

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Benefits of Perfomrance AppraisalBenefits of Perfomrance AppraisalBenefits of Perfomrance AppraisalBenefits of Perfomrance Appraisal

AdministrativeAdministrativeAdministrativeAdministrativeDevelopmentalDevelopmentalDevelopmentalDevelopmental

CompensationCompensationCompensationCompensationIndividual EvaluationIndividual EvaluationIndividual EvaluationIndividual Evaluation

Job EvaluationJob EvaluationJob EvaluationJob EvaluationTraining Training Training Training

Career PlanningCareer PlanningCareer PlanningCareer Planning

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Compensating the Workforce41

-Base wage / salary

-Benefits Pay

- Incentives

Employee Compensation

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Strategic Compensation Planning

Link the compensation of employees to the objectives, philosophies and culture of the organization.

Establish a pay-for-performance standard. Match the compensation to their needs in order to

motivate employees through compensation.

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Four Importance of HRM in SMEs

1. Hire the right employees and constantly improve their skills.

3. Motivate workers to higher levels of performance.

2. Build a supportive organizational culture and structure that enable the company to reach its potential.

4. Plan for “passing the torch” to the next generation of leadership.

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Supportive Organizational Culture and Structure

How? Create a culture that stresses commitment to

organizational goals, quality and flexibilitySupport continual learning and developmentParticipative management and facilitate

communicationRespect for work and life balanceResponse to diversity, integrity, accountability

actively

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Four Importance of HRM in SMEs

1. Hire the right employees and constantly improve their skills.

2. Motivate workers to higher levels of performance.

3. Build a supportive organizational culture and structure that enable the company to reach its potential.

4. Plan for “passing the torch” to the next generation of leadership.

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Why is Management Succession So Difficult?

No management succession plan!81% of all business founders intend to pass

their companies on to their children.But...25% of family business owners have no

formal management succession plan!

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HRM Issues47

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How should business owners do to deal with this particular HRM issue?

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Benefits of Workforce Diversity Management

1. Reduce conflict among employees of different backgrounds as they learn to respect each other’s differences

2. More productive working relationships3. Increase commitment to and share the

organizational goals4. Increase innovation and creativity5. Increase ability to serve the needs of an

increasingly diverse customer base

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Discussion50

See the given case study

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Theme: “Talented Employee Retention in SME”

Discuss within your team members Identify and choose 5 most applicable tips which your team

agree. Present what you find to other teams, any similarities or

differences? Negotiate! Between A: G1&2, B: G3&4 Negotiate between A & B Draw them into a model Last but not least, …

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Feedback

What did you learn from this activity?

What difficulty did you find during the negotiation?

Which activity from this discussion is most critical?

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Further Consideration

1. Empowerment does not always work positively. And how should business owners do to assure Empowerment Works Best in their businesses?

2. What initiatives should supportive associations provide in order to assist the Business Success Transfer to the next generation?

3. Is there a case for the elimination of HR specialists, so that the function can be performed by all managers?

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End

Thank you very much

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