Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
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Bridge Knowle - Salary and Reward Structures (Training and Workshop)

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Identify and select Salary Structures that meets and...

Identify and select Salary Structures that meets and
contributes to organization objectives across various functions
 Know How to Benchmark & Match Roles in your
company’s salary structure
 Know how to choose a Suitable Variable Pay Scheme and
examine their linkage to performance management
 Identifying Challenges/Pitfalls in salary structures and
variable pay scheme

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Bridge Knowle  - Salary and Reward Structures (Training and Workshop) Bridge Knowle - Salary and Reward Structures (Training and Workshop) Presentation Transcript

  • COMPETENCY-BASEDSALARY + REWARDSTRUCTURETraining Session and WorkshopKenny Ong http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Intro• Day Care Center http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Part AHRM STRATEGY ANDREWARD STRATEGY http://totallyunrelatedrandomanddebatable.blogspot.com/
  • The McPlaybook* Make it easy to eat Make it easy to prepare • 50% drive-thru • High Turnover • Meals held in one • Tasks simple to learn hand & repeat Make it quick Make what customers want • “Fast Food” • Prowls market for new • Tests new products products for Cooking Times • Monitored field tests*Adapted from: Businessweek , Februrary 5th 2007 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Phases of Organisation Development Growth Current Next Phase Future Exploring and role Managing growth Managing Efficiency and Phase Reengineering definition Organisation Entrepreneurial Professional Organisation Efficiency features Phase Development Phase Phase • Results orientation • New relationship buildingPeople • Innovation • Teamwork & Cooperation • Enthusiastic • Open to changecharacteristics • Concern for order & quality • Efficiency & productivity oriented • High standardsOrganisation • Flexibility • Excellence • Responsibility • Quick decision making • Participatoryclimate • Commitment • Pace setting and • Systems thinking • Coaching & counselingManagement authoritative • Coaching & developmental • Authoritativestyle • Attract capable individuals • Reward results achieved • Cost efficiency • Flexibility • Retain & motivate • Consistency • Equity • Variable base salary & • High to medium base salaryObjectives of effectiveness related & longer term performance • Medium base salary and performance rewards related rewards efficiency performance rewardsHR policies http://totallyunrelatedrandomanddebatable.blogspot.com/
  • The Changing Business Environment Pre-merdeka1945- Post Merdeka1957- Industrialization Development of the knowledge 1956 1969 period1970-1995 based economy1996 and on goingEra • Post war • Post colonial • Industrial • Free market, customer • Reconstruction administration development centered organization • National developmentGovernment • Establishing control • Establishing • Leading economic • Recognizing global forcesobjectives over natural government control change • Preparing a resilient and just resources • Protecting free • Creation of society • Establishing enterprise conditions for • Searching for a new administration • Domestic economic regional and relationship model with systems in the development international industry interest of the British recognition empireCorporate • Production for the • Import substitution • Production capacity • Innovationculture colonial empire • Domestic market utilization • Global standards on needs • International efficiencyCorporate • BOD led by “home • Autocratic • market Authoritative • • Professional management ParticipativeLeadership office” • BOD led by • BOD led by • BOD of professionals, team representative individualistic style charismatic decision making directed at • Home office personalities achievement of targeted standards • Largely local results principles on BOD • International standards on conduct corporate governance.Pay • Pay practice • Pay for loyalty – • Flexible pay • Attract, retain and motivatePhilosophy “enough” years of service competent professionals http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Budgeting vs. PrioritiesExample: Business Situation vs. R&D Priorities Upturn Flat DownturnFight Complacency Innovation SalesSharpen Edge Acquire Cash FlowKeep Momentum ProfitsConquer Build momentumNPD Cycle Time Focused on Improve Top 15% ‘Breakthrough’Improve Edge revenue-generating JV, In-source, Out- productsExtensions sourceCounter Competitor Eliminate bottom 20% ↓ R&D, ↑Sales http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Business Situations vs. HRM Upturn Flat DownturnFight Complacency Innovation SalesSharpen Edge Acquire Cash FlowKeep Momentum ProfitsConquer Build momentum‘Change’ mgmt Talent Mgmt Top Talent focusReduce Fat Innovation/R&D Sales, Sales, SalesContinuity Early wins Increase attritionEveryone Happy Slow Down HR Costs Motivation http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Business Situations vs. HRM Upturn •Projects Flat Downturn •Job Ads Fight Complacency Innovation Sales •Communication Sharpen Edge Acquire Cash Flow •F/L Manager Com. Keep Momentum Profits •Middle Management Conquer •Involvement (survey, momentum Build suggestions)‘Change’ mgmt Talent Mgmt Top Talent focus •Realistic GoalsReduce Fat Stack R&D Stack Sales •Controllable KPIs (customerContinuity Early wins Increase attrition satisfaction, production)Everyone Happy Slow Down HR Costs Motivation http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Staff Attraction & RetentionTHE BATTLE FOR TALENT http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Intro:“Cow don’t drink water cannot push cow head down” http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Question: TalentManagement for Who? Excellent Very Good Average Not Good Commit Suicide http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Before we start…1. Who designs your Talent Management programs?2. Are you in the Talent Pool?3. Do you qualify?4. “It takes a crook to catch a crook” http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Talent Segmentation• Who are your Talents? : A Talent for others does not mean a Talent for you http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Talent Segment Targeting• Unwanted by big MNCs• Small companies• Boring Environment• No Growth/Learning• No MBA• Passion, Values, IQ (streetsmart)• Appreciate Chaos• Multitask• Passion to Learn http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Talent Segmentation• Identify POTENTIAL 2 3 4 5PERFORMANCE 5 Group I (Talent Pool) 4 3 2 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Talent Segmentation• Identify POTENTIAL 2 3 4 5PERFORMANCE Group II Group I 5 ( Potential) (Talent Pool) 4 Group IV Group III 3 (Counseling) ( Performance) 2 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Selection and Identification 1. Results PERFORMANCE APPRAISAL 2. Values 3. SpecialContributions http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Selection and Identification POTENTIAL 1. CapacityEVALUATION 2. Competencies 3. Culture http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Selection and Identification POTENTIALEVALUATION 1. CapacityLearn Ambition Next Level http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Selection and Identification POTENTIAL EVALUATION 2. CompetenciesCompetent Pressure Reliable/Consistent http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Selection and Identification POTENTIAL EVALUATION 3. CultureDemonstrate Influence Improve http://totallyunrelatedrandomanddebatable.blogspot.com/
  • ExerciseDefine ‘Performance’ Define ‘Potential’ http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Exercise• Exercise:1. Factors for Performance Appraisal2. Factors for Potential Appraisal http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Talent Scarcity and Brain- Drain Problem1. Change your Business2. Change your Business Model3. Re-locate4. In-Source5. JV or Partnership or Swap6. Create micro Business Units7. Over Promote8. Over Pay9. Contractual tie-up10.Hire Low, Train High http://totallyunrelatedrandomanddebatable.blogspot.com/
  • SALARY & BENEFITS: HOW ITFITS INTO THE BIGGERSCHEME OF THINGS http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Brand Execution: Aligning the 4-Wheels Brand ResourcesStructure Position Segmentation & Targeting Philosophies Leadership Person http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Brand Alignment: Talent Segment PhilosophiesPrinciples HR Philosophy 1. Equal / Fair 2. Happy / Productive 3. Hire Low, Train High 4. Performance vs Potential 5. SP drives TM 6. Talent Pool owned by the company 7. Retention / Engagement http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Brand Alignment: Demographics Segment Philosophies?Principles HR Philosophy http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Alignment: Framework • Org StructureStructure • Job Design • C&B • Policies & procedures • Decision making • Job fit • Management Systems • BSC and KPIs • Decentralized vs. Centralized • Control vs. Empower http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Strategy: Framework • ToolsResources • Physical facilities • Peer support • Information • T&D Programs • Mentors • Guides • ICT • OJT http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Strategy: FrameworkLeadership • Role modeling • Vision/Mission/Philosophy • Leadership Style • Delegation & Empowerment • C&B • Promotions • Transition development http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Strategy: Framework • RecognitionPerson • Recruitment • Training • Values • Motivation • Self Efficacy • Awareness • Useful Competencies • Career aspirations • Attribution (control) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Alignment: 4-Wheels Model Brand ResourcesStructure Position Segmentation & Targeting Philosophies Leadership Person http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Exercise: Use the 4-wheels to determine corporate alignment needs http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Consulting Process and Deliverables Step 3: Step 4: Step 1: Data Step 2: Analysis Recommendations Tools/Resources Turnover history & Exit Changes to HRM policies Interview Formats and Turnover Analysis Interviews (inc. C&B) Questions for Recruitment Work Culture Employee Satisfaction Training Program input Work Culture analysis enhancements Survey Employee Satisfaction Leadership and staff Q12 Staff Engagement Leadership analysis Survey relationship mgmt Tools Q12 Staff Engagement Compensation & Benefits Performance management Benefits Survey format Survey analysis system Stay Survey HRM policies analysis Staff MotivationCompensation & Benefits 39 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Part BSALARY & BENEFITS http://totallyunrelatedrandomanddebatable.blogspot.com/
  • OPTIMIZING COMPENSATION& BENEFITS http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Background: The Four Desperates1. Desperate 2. DesperateCompetition Consumer3. Desperate 4. Desperate Achievers Changes Refer: Analysis of Retention – Example and Exercise http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Exercise: Define your Talent issues, limited to the most critical 4 aspects. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Principles and Objectives Principles Company’s Needs1. Succession Planning of Key Leaders – Founding Directors (perpetual business theory)2. Retention of Key Staff – especially younger ones3. Transform into a Performance-based organization http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Principles and ObjectivesPrinciples HR Philosophy 1. Equal / Fair 2. Happy / Productive 3. Hire Low, Train High 4. Performance vs Potential 5. Retention / Engagement http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Exercise: Define your Company-HRM Objectives and HRM Philosophies. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What drives our Reward?Strategy Values Compensation & Benefits http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Before we proceed…Reality #1 Cash is King http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Before we proceed…Reality #2 Tangible C&B Attraction http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Before we proceed…Reality #3 In-Tangible C&B Retention http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Before we proceed…Reality #4 In-Tangible C&B Tipping Point for Attraction/Retention http://totallyunrelatedrandomanddebatable.blogspot.com/
  • The 51.28% Theory• Resign = Push + Pull > 51.28%• If staff is Happy: => 0 + Pull > 51.28% http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Exercise: What “Values” drive your Talent Management strategies?• How will these Values impact your HR and C&B policies? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Branding and Positioning:“You don’t attract who you want. You attract who you are” John Maxwell http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What to Pay?• Pay for Service• Pay for Job• Pay for Competency• Pay for Performance http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Performance and Incentives1. Internal Equity 1. Internal Job Rates 2. Performance differentials2. External Competitiveness 1. External Job Rates - Benchmarking 2. Demand & Supply http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What’s the Difference?• Increment• Bonus• Promotion Exercise: How does your company define the difference? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • How to choose a durian http://totallyunrelatedrandomanddebatable.blogspot.com/
  • How to choose a durian Durian CompareEachOther Other stall http://totallyunrelatedrandomanddebatable.blogspot.com/
  • How do we compare? • Skills / • ProblemsKnowledge • Responsibility http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Pay for Job• Competency • Problem solving - Knowledge - Complex - Skills - Type of problems - Experience - Special Problems • Responsibility - Authority - Success/Failure - Freedom to act http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Equity Job CompareOthers •Job Size Outside http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What to Pay?• Pay for Service• Pay for Job• Pay for Competency• Pay for Performance Exercise: Which ones does your company use for Pay? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Pay For SERVICEhttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • “He has 20 years experience: 1 year of bad experience repeated 20 times” http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Pay for SERVICE• Loyalty (relevant years of service) This consideration may be rewarded in the following manner :- Descriptions of performance Years in Compa Ratio PositionConsistently 10 years of competent performance in the 10 1.43-1.50positionConsistently 9 years of competent performance in the 9 1.36-1.42positionConsistently 8 years of competent performance in the 8 1.29-1.35positionConsistently 7 years of competent performance in the 7 1.21-1.28positionConsistently 6 years of competent performance in the 6 1.13-1.20positionConsistently 5 years of competent performance in the 5 1.06-1.12positionConsistently 4 years of competent performance in the 4 1.00-1.05position http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Pay for SERVICE• Seniority (career level on the professional career level) We do not recommend that years of service(Seniority) in the organization be rewarded directly. Years of service must contribute to performance improvement or must lead to structural and content change of the position. In both cases the recognition can be systematically rewarded as explained earlier. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Pay For JOBhttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • DocumentationJOB DESIGN http://totallyunrelatedrandomanddebatable.blogspot.com/
  • District Engineer, TNB Duties and If stated as Accountabilities then the job Responsibilities must produce :Control, operate and Ensure uninterrupted supply tomaintain the District consumers in the district by operatingDistribution System the District Distribution System. Ensure availability of adequate supply forPlan and design the High future needs of industries in the district byvoltage system planning and designing the High voltage SystemManage major supply Ensure satisfaction of the major customersprojects to customers in in the district by managing supply andthe district. Distribution. Ensure high performance and ProductivitySupervise all technical of technical staff by adopting proper humanstaff in the district. resource management methods on selection, training, coaching, counselling and motivation. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Results Driven Activity vs. Accountabilityhttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • Exercise: Results DescriptionKey Key Activities KPIsResult 1. 1.1. 2. 2. 3. 3. 4. 4. 1. 1.2. 2. 2. 3. 3. 4. 4. 1. 1.3. 2. 2. 3. 3. 4. 4. 1. 1.4. 2. 2. 3. 3. 4. 4. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • General Manager, ManufacturingKey Results Major Supporting Actions Performance Indicators1. Ensure •By monitoring production performance and •Timely productionachievement taking corrective actions targetsof targeted •By analysing production downtime and •Productivity ratiosproduction introducing improvements •Downtimevolume •By thorough preparation for introduction and •Implementation implementation of new models and variants schedule •2. Ensure •By reviewing quality performance results and •Quality indexachievement identifying non conformance and undertaking •Defect occurrenceof product corrective actions •Non-conformancequality targets •By analysing customer feedback and taking to established corrective actions standards •By undertaking on-line and off-line •Demerit points continuous quality improvement programs and activities •By undertaking education and re-education programs http://totallyunrelatedrandomanddebatable.blogspot.com/
  • General Manager, ManufacturingKey Results Major Supporting Actions Performance Indicators3. Ensure safe •By incorporating safety and health features •Accident rateand healthy into infrastructure design and development •Health standardsoperating •By creating awareness of safety and health •Operation audit among employees through programs and findingsenvironment campaigns •By constant monitoring of safety and health standards through working committees •By developing and implementing occupational health programs4. Ensure •By developing and implementing on-the-job •Productivity ratioscompetent, training •Turnover ratemotivated and •By developing and promoting effective •Employee moraleproductive communication with employees and union •Team activitiesmanufacturin •By ensuring continuous development and •Strikes /g workforce upgrading of skills disciplinary actions •By providing appropriate recognition and rewards for high performance •By promoting teamwork through QCC and 5s activities http://totallyunrelatedrandomanddebatable.blogspot.com/
  • General Manager, ManufacturingKey Results Major Supporting Actions Performance Indicators5. Enhance •By ensuring effective and efficient •Operating efficiencyoperating maintenance of plant, machinery and standardsefficiency and resources •Cost per unitproductivity •By reducing wastage and eliminating •Wastages and pilferage losses •By reducing and managing indirect overtime •By managing utilisation of consumables and materials6. Timely •By undertaking effective planning and •Timely completionexecution of provision of resources of projects withinprojects •By monitoring implementation and progress cost allocation of projects •By managing project costs •By developing effective project teams http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Salary Practice Analysis of Executive Director Positions Market Base Salary Practice of Executive Directors 120,000 100,000 Q3Monthly Base Salary (RM) 80,000 Median 60,000 Q1 y = 7333.3x - 53742 40,000 20,000 0 8 9 10 11 12 13 14 15 16 17 Market Reference Job Grade http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What is Market Reference Job Grade?Market Reference Job Grade is an observed cluster of similar size jobs. Why Market Reference Job Grade is Needed? Job comparison using job titles would be too rudimentary. Directors are rewarded for responsibilities and accountabilities,therefore remuneration system must be closely linked to job size which reflects the level of responsibilities and accountabilities. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Determination of Market Salary Practice Market Salary 14000 PracticeMonthly Base Salary(RM) Line 12000 10000 8000 6000 4000 2000 0 Market Reference Job GradeJob Point Range http://totallyunrelatedrandomanddebatable.blogspot.com/
  • How Market Reference Job Grade is Determined ? Job Descriptions Organisation StructureCurrent Company Job BusinessGrading Structure evaluation Complexity Revenue/Capital Financial Indicators Employed (Company Size) (Company Size) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • How job evaluation is conducted CompetencyResults Problem SolvingCreation http://totallyunrelatedrandomanddebatable.blogspot.com/
  • The ranking method• Jobs are considered as a whole• Reporting relationships or nature of functions or some discernible factors are applied Chief Executive Sales Production Finance Manager Manager Manager Sales Production Accountants Executive Executive http://totallyunrelatedrandomanddebatable.blogspot.com/
  • The job classification methodWhole jobs are grouped together on the basis that theyseem to be equivalent in size. Chief Executive Sales Production Finance Manager Manager Manager North Production Mgr X Planning, budgeting and project finance South Production Mgr Y Centre Production Mgr Z Management accounting http://totallyunrelatedrandomanddebatable.blogspot.com/
  • The factor comparison methodWhat are relevant factors? • Know-how • Problem solving - Skills - Job complexity - Experience - Freedom to think - Managerial skills-expertise - Nature of problems - Qualification - Job challenges • Responsibility - Accountability - Freedom to act - Limits of authority - Size of operation http://totallyunrelatedrandomanddebatable.blogspot.com/
  • The factor comparison method - continuedFactors are measured by comparing one against the other. Knowledge Responsibility Complexity 10 A B 9 A 8 7 B A 6 5 B 4 3 C C 2 1 C A = 10 + 9 + 7 = 26 B = 7 + 5 + 10 = 22 C = 3+1+3 = 7 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • The point factor method• For each factor a scale is developed.• The factors chosen are tested for reliability and validity. The fundamental job factors are :- –Know-how –Problem solving Competency –Accountability (for results Results creation) Creation Problem Solving http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Point Factor Method - Job Evaluation• Job Evaluation is a system for rating jobs logically and fairly• Weber’s Law states that job measurement can be achieved up to an accuracy level of 15%• The number pattern used for measurement of jobs is a 15% gap scale, i.e. 57 66 76 87 100 115 132 152 175 200 Most Consultants use these universally accepted job measurement principles http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Job Factor : Competencies• Competency includes every kind of capability, skill andability that is necessary to produce the key results of the jobat an acceptable level.• It does not matter whether the competency is acquired byformal training in an institute of higher learning or by workingon the job and becoming capable through experience• Competencies can be expressed either bydepth(specialization) or breadth(generalization) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Levels of Competency2112 Level Exceptional Mastery1840 11 Unique mastery in a scientific discipline or professional mastery of organisational and institutional systems.16001400 Level Recognised Authority1216 10 Professional Mastery1056 Recognised authority outside one’s organisation in a particular field or mastery of integrative mechanism in a broad area.920 Level Professional Mastery / Specialist800 9 Know-how at a high level700 An authoritative source of knowledge within the organisation. These jobs require accumulated know-how through extensive experience in a particular field of study. Alternatively, these jobs require broad practical knowledge of a variety of concepts and models necessary to engage in goal directed effort involving complex problem situations.608 Level Seasoned Professional level of know-how528 8 Jobs requiring specialist know-how that can be obtained only by years of experience in the relevant field of knowledge. These jobs460 require extensive experience in having used concepts covering a broad area of knowledge in order to resolve problems.400 Level Senior Professional level of know-how350 7 At this level jobs require extensive knowledge covering multiple levels of principles and theoretical models in a particular field or functional304 areas..264 Level Professional level of know-how230 6 This category of know-how ranges from knowledge of principles and concepts to operational knowledge of application of principles and200 concepts.175 Level Basic Principles and Theoretical Models (Junior Professional)152 5 Jobs at this level require knowledge of basic principles and theoretical model that is normally gained through formal study.132115 Level Sub-Professional know-how100 4 This is the know-how level of sub-professionals. Usually 2 - 3 years of study beyond basic schooling is necessary to acquire the 87 competencies involving the required concepts and theoretical principles. Alternatively this level is characterised by several years of working experience to resolve problems76 Level Vocational Skills66 3 This category of know-how is usually referred to as vocational skills. Jobs at this level require procedural knowledge which is provided by57 either job experience or through vocational training.50 Level Procedures43 2 Jobs at this level require knowledge of work routine and experience in using simple tools, equipment and machines.3833 Level http://totallyunrelatedrandomanddebatable.blogspot.com/ Basic Education29 1 The lowest level of know-how which is largely basic education and on the job instruction of work routines.25
  • Job Factor : Problem Solving ExplanationProblem solving is the application of knowledge required to identify andresolve problems.There are essentially two dimensions to problem situations :-1. the extent to which the problem situation is covered by setprocedures, established standards, company policies and principles andmore generally by guidelines and goals orientation.2. the extent to which the job encounters similar problem situation,differing situations or situations requiring constructive thinking,evaluative judgement or situations requiring the development of newconcepts and generalisation. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Levels of Problem Solving528 Strategic Direction460 Level 9 This is the highest level where the job holder is free to engage in any form of problem solving constrained only by the rules of general400 conduct, cultural norms and business philosophy . Jobs of this nature are usually engaged in adaptive thinking of a very high leve and in applyingnew and imaginative approaches .350 Broad Policy Development304 Level 8 This level of jobs engage in problem solving situations with the aim of achieving ultimate goals. The holders are concerned about job264 achieving goal direction, and they areguided by the operating philosophy . A large part of these jobs involve adaptive thinking of a high order.230 Broad Policy Implementation200 Level 7 These jobs are guided by broad policies . However, the problem solving is directed at achieving specific objectives by adaptive thinkin175 The “What” and “ How” i.e. problem definition has to be worked out.152 Defined Policy132 Level 6 This level of jobs are guided in problem solving by clearly defined principles and available policies . The nature of problems115 encountered are such that the “what is” is clear, and a certain degree of adaptive thinking is required to determine solutions.100 Principles87 Level 5 These jobs engage in problem solving based largely onstandards available or principles set . Where procedures are available, they are76 usually unspecified allowing discretion. The nature of the problems encountered are usually resolved by applying learned solutions re very little deductive and extrapolate thinking is required.66 Process / Standards57 procedures and precedents . The nature of the problem presents issues that require on Level 4 These jobs solve problems by the application of50 to search for the answer from among several known alternatives.43 Strict Standards33 procedures and precedents . The nature of the problem is specific and one has to choo Level 3 These jobs solve problems by the application of29 between defined solution alternatives.25 Procedures22 Level 2 This level of jobs are usually “ how to solve their problems and they resolve problem situations working with standard instruction told”1916 Routines14 Level 1 These jobs followdetailed instructions and strict rules of conduct . The job holder is likely to be resolving problems engaged in12 repetitive reaction to problem situations where one has to choose from a given set of solutions. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Job Factor : Results Creation ExplanationThis is the element of the job that can be best described as “theaccountability for actions and for the consequence of actions taken”.The more freedom there is in the job to take actions and the more impactthe job has on end results the greater the Results creation element.For example, the job of a General Manager of a business unit can beconsidered as having more impact on end results than the job of aDepartment Manager of the business unit. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Levels of Results Creation1056 Strategic Direction920 Level 9 Visionary.800700 Broad Policy Development608 Level 8 Very general guidance from the highest level of the enterprise or organisation. These jobs have a hig528 impact on end results.460 Broad Policy Implementation400 Level 7 These jobs are subjectbroad policies and there are to general guidelines from the highest vel of the le350 enterprise or organisation304 Defined Policy264 functional policies and goals. Level 6 At this level of Freedom to act, the jobs are subject to230200 Principles175 Level 5 specific policies and theyare also subject to general practice of the This level of jobs are subject to152 functional area.132 Process / Standards115 Level 4 These jobs are subject to well defined policies and procedures . Results produced are subject to100 review by Superior. 87 Strict Standards 76 Level 3 These jobs are subject standardised work practices and procedures . Generally supervision over to 66 performance is by close review of progress and results. 57 Procedures 50 Level 2 instruction and prescription of work routine. These jobs are supervised closely by 43 38 Routines 33 detailed work routines and there is little or no room for change. Level 1 This level of jobs are subject to 29 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Job Evaluation ResultsThe positions of Executive Chairman and Executive Directors were evaluated basedon the Role and Accountabilities as designed by ConsultantsNo Job Title Results Problem Competency Total Job Creation Solving Job Grade Points Level Points Level Points Level Points 1 Executive 9+ 920 10 700 9 920 2540 14 Chairman 2 Executive 8 608 8+ 350 8 528 1486 12 Directors http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Job Evaluation Results Problem Competency Result Creation Solving Total Mkt. RefNo. Positions/Company Grade Leve Points Grade Points Level Points Level Points l1. Executive Chairman 9+ 920 10 700 9 920 2540 142. Executive Director 8 528 8+ 350 8 608 1486 123 Executive Director 8 528 8+ 350 8 608 1486 124 Non Executive Directors 8 528 8 304 7+ 460 1292 115 GM, Asia Pacific Centre Sdn Bhd 7 350 7+ 230 6 264 844 96 GM, Marketing 7 350 7+ 230 6 264 844 97 GM, Technical & Quality Assurance 7 350 7+ 230 6 264 844 98 GM, (Sepang) Sdn Bhd 7 350 7+ 230 6 264 844 99 GM, (Niaga) Sdn Bhd 7 350 7+ 230 6 264 844 910 GM, Security Services 7- 304 7 200 6 264 768 811 GM, General Ops 7- 304 7 200 6 264 768 812 GM, Corporate Communications 7- 304 7 200 6 264 768 813 GM, (Technologies) Sdn Bhd 7- 304 7 200 6 264 768 8 GM, Agriculture-Horticulture Sdn14 7- 304 7 200 6 264 768 8 Bhd15 GM, Human Resource 7- 304 7 200 6 264 768 8 GM, Sports UnitSdn16 7- 304 7 200 6 264 768 8 Bhd GM, Mgmt & Technical17 7- 304 7 200 6 264 768 8 Services Sdn Bhd http://totallyunrelatedrandomanddebatable.blogspot.com/18 GM, Public Relations 7- 304 7 200 6 264 768 8
  • Market Salary Scale Job Mkt General MarketPoints Ref General Problem Freedom to Grade Competencies Solving Act for Q1 Med Q3 Results o Ultimate integration Philosophical and Achievement of 62,100 69,200 88,6004201- through the provision of strategic integration of enterprise philosophy 16above enterprise philosophies very large multibusiness objectives global enterprise3301- o Business integration of Guiding strategic Achievement of 50,600 56,600 71,9004200 15 global enterprise integration of very large enterprise goals and multibusiness global philosophy objectives enterprise 14 o Business integration of Guiding strategic Achievement of 41,300 46,200 58,4002501- very large multibusiness integration of complex enterprise objectives3300 enterprise very large multibusiness and goals group1801- 13 o Enterprise integration Guiding strategic Achievement of 33,600 37,800 47,4002500 and multibusiness sector integration of complex enterprise business leadership issues large objectives and multibusiness unit(s) business goals1481- 12 o Strategic integration of Managing strategic Achievement of 27,400 30,900 38,5001800 the enterprise integration issues of large longer term enterprise business unit(s) goals 11 o Strategic integration of Resolving strategic Achievement of 22,400 25,200 31,3001181- the operations of large integration issues and business objectives1480 business unit of several units creating conditions for cross and strategies functional cooperation. JJob subject to broad goals & 10 broad policies Involved in Strategic business Management of 18,200 20,600 25,400941 determining key results to be management capability or conceptual direction and - achieved by the organization comprehensive integration achievement of goals and1180 both long term and strategic of large but relatively business objectives within results homogenous business units very broad guidelines and resource constraints http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Results Creation (Freedom to Act)Grade Problem Solving Competency Head of Business Area 22 528 350 608 21 460 304 528 400 264 460 20 350 230 400 19 304 200 350 Sr. Mgr. 264 175 304 Sr. Mgr. Customer 18 Sales Serv. & Quality Sr. Mgr. Sr. Mgr. HR & Sr. Mgr. 230 152 264 17 Service Product Admin A Snr. Mgr. 200 132 230 Sr. Mgr, 16 Training Dist. Job grade as it should be Evaluated new grade
  • Alternative to Job Evaluation1. Obtain Consultant’s report2. Match internal jobs (+salaries, between 2-5 yrs in the job) to Consultant Report’s Grades and Points System using Mid-Point salary as the reference point 1. E.g.: Admin Executive, RM2,300 -> Grade 3, Mid- Point (450 points); assign 450 points 2. Benchmark about 20%-30% of the jobs3. Cluster or Slot remaining 70% of jobs according to Grading Scale based roughly on 3 factors: 1. Competency, Problem Solving, Results Creation http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Pay For PERFORMANCEhttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • Which system should we use? Trait-based Behavior-based Refer: Which Performance Management System Knowledge/Skill based should we use? Activity based Results-basedManaging Performance = Managing Expectations What’s YOUR expectation? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Compa Ratio TableUse this if your company:• Pays for Performance, and• Pays for Job ratesDef:Mid-Point = Mid Point of Pay GradeGrade E2 Min MID Max RM2,000 RM2,500 RM3,000 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Compa Ratio Analysis – An Indicator of Salary PositionCompa Ratio (CR) =Actual Salary ÷ Mid-Point Salary of the Salary Range 75th Percentile Salary (RM) CR = 1.30 CR = 1.00 CR = 0.70 Job Points http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Incumbents’ Salary AnalysisIncumbents’ monthly base salaries compared with mid-point salary of therecommended salary range :- Incumbent Mkt Reference Mid Point Salary Current Compa Job Grade for the Market Job Monthly Ratio Grade Base SalaryABC 2 RM RM 1.00 2,6000 2,600Hj XYZ 2 RM RM 1.05 2,600 2,750GHI 2 RM RM 0.75 2,600 2,400 This job grade represents the measured “job size” based on current job accountabilities http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Compa Ratio Table < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.354321 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Compa Ratio Table < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.3543 5%21 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Compa Ratio Table < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.35 94 73 9 7 5% 4 32 21 0 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Compa Ratio Table < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.35 15 12 9 8 74 12 9 7 5 33 9 7 5% 4 32 6 4 2 1 01 4 2 0 0 0 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Exercise:• Determine your pay grades and salary points (internal or external benchmark?)• Draw your Compa Ratio Table http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Employee Distinction? < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.35 9 8 7 6 54 8 7 6 5 43 7 6 5% 4 32 6 5 4 3 21 5 4 3 2 1 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Employee Distinction? < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.35 20 15 12 8 54 18 12 9 5 33 9 7 5% 4 32 1 1 1 0 01 0 0 0 0 0 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Employee Distinction Average Rating Multiply Example Example Rating Factor Rating Increme nt > 4.1 5 2 4.2 8.4%> 3.3 – 4.1 4 1.2 3.5 4.2%> 2.3 – 3.3 3 0.75 2.8 2.1%> 1.3 – 2.3 2 0.5 1.8 0.9% ≤ 1.3 1 0 1.0 0% http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Job Holder’s Salary Determination Model Step 1 Step 2 Step 3 Performance Rating Descriptions of Years in Salary Personal Rating Recognit Rating performance Position Range Contribution ion (% Descriptions Consistently 8 years of 8 32,756 – Level increme competent performance 33,740 nt)Distinguished 5 in the position Unique 3 10%Commendable 4 Authority Consistently 7 years of 7 31,801 – competent performance 32,755 The individual isCompetent 3 in the position a recognised industry leaderAdequate 2 Consistently 6 years of 6 30,876 – in the field.Entry zone / 1 competent performance 31,800unsatisfactory in the position Significant 2 5% Consistently 5 years of 5 29,976 – The individual competent performance 30,875 brings market- in the position recognised Consistently 4 years of 4 29,101 – characteristics competent performance 29,975 to the job. in the position Consistently 3 years of 3 26,000 – Insignificant 1 0% competent performance 29,100 in the position http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Job Holder’s Salary DeterminationThe significant compensable elements of the three incumbents are linked belowshowing the related salary decision :- Step 1 Step 2 Step 3Incumbent Mkt Current Mid Incumbent’s Loyalty Personal New New Ref. Monthly Point Performance Characteristics Job Base Salary Salary Compa Current Yrs in Min Sal. % Grade Salary Rating Sal. CR Level Increase Ratio Pst’n Level (RM)ABC 11 RM RM 3 1.05 3 26,000 – 1 0% 27,500 1.05 27,500 26,000 29,100 (current salary already within the range)XYZ 11 RM RM 3 1.05 3 26,000 – 2 5% 28,875 1.11 27,500 26,000 29,100 (current salary already within the range)DEF 11 RM RM 3 1.05 3 1 0% 27,500 1.05 27,500 26,000 26,000 – 29,100 (current salary already within the range) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Employee Distinction• Identify POTENTIAL 2 3 4 5PERFORMANCE Group II Group I 5 ( Potential) (Talent Pool) 4 Group IV Group III 3 (Counseling) ( Performance) 2 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Curse of the Bell Curve ‘A’ ‘B’ ‘C’ ‘D’ ‘E’Staff Staff Staff Staff Staff http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Pay For COMPETENCIEShttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • Position: Secretary Responsibilities + Personal Competencies Differentiating Tasks + Activities Competencies•Typing •Pleasant •Proactive•Manages •Accurate •Initiativecommunications •Is able to take notes •Independent•Keeps short-hand on shorthand and •Integrity (trust)notes typing memo effectively •Creative•Makes •Presentable •Resourcefulness •Appearance •Always excelappointments •Behaviours •Unwavering•Uses the computer •Good manners dedication and•Filing •Courteous commitment•Takes minutes •Diligent •Ability to make simple•Follow-up decisions•Makes coffee •Sensitive to people•Keeps secrets •Positive attitude•Drafts letter•Screens calls The Job Person Characteristics The Superior Performer http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Competencieshttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • The appointment of a Senior Manager - an illustrationSelection criteria of the Present Selection Selection Criteria for thepast Criteria FutureMBA Knowledge MBA MBA10 yrs work experience 10 yrs work experience Less than10 yrs work Skills experience I am able to help others I can get others to agree I am an expert Self Concept in doing things right on what is right I have to gain I enjoy contributing as a I enjoy having to get Social Role team player to what is respect of others others to determine right what is right Aggressive or Positive and Positive, enthusiastic submissive Traits proactive and proactive •Achievement & Resourceful power• Personal social powerAggrandizement (persuasion, Motive •Use of technical influencing,• Excessive use of knowledge & reasoning, concernposition power power of for personal(status & authority) persuasion impact) This model provides clarity on job related competencies. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Job vs Person Match: District Engineer Mr. A Ms. B M.Eng.10 years as M.Eng.10 years as an an engineer in engineer in Tech.jobs Tech.Jobs. Skills & KnowledgeI like to help my I’ll help if I amteam achieve. Social Role askedI like to learn new I am an Self Conceptthings expert Proactive Traits Aggressive I told them what isI want to do better Motive right http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Job vs Person Match: Room Sales person Ms. A Ms. B Diploma in Social Diploma in Social Sc. Sc. 5 years as an 5 years as as waitress Admin.clerk Skills & in a hotel KnowledgeI like to meet Social Role I don’t likenew people injusticeI like to learn new Self Concept I am alwaysthings unluckyAssertive Traits AggressiveI want to do better Motive I told them what is - right http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Superstar Competency Model• Exercise: Develop Your Own “Superstar” Competency Model http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Competency Target Setting1. Initiative2. Teamwork3. Problem Solving4. Leadership5. Integrity What’s the problem here? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Competency Target SettingInitiative1. Minimize problems quickly without needing to be asked2. Seeks personal growth and professional self- development3. Doing more than is required/expected in a job4. Seeks new and improved solutions and approaches to completing assignments5. Looks for opportunities to help others and team http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Exercise: Competency Dictionary• (Refer to Workbook for examples) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Competency Standards3 Meets behavioral standards consistently. Is a good role model for others.2 Meets behavioral standards some of the time. Needs improvement.1 Does not meet behavioral standards. Require counseling or disciplinary actions. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Exercise: CompetencyStandards http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • The Specialist Career Ladder http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Career ManagementA professional of the past The new career professional Where is my job I need an GM interesting career Seasoned Manager Manager Professional Senior Professional Asst Mgr Asst Mgr Developing Professional Executiv Developmental e Executive http://totallyunrelatedrandomanddebatable.blogspot.com/
  • SCL: Specialist CareerLadder Principal Consultant (1) Consultant (4) Specialist (4) Associate Specialist (2) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • SCL: Specialist Career Ladder •Telco,Principal Consultant (1) •Outsourcing, •Aerospace, Consultant (4) •Biotech, Specialist (4) •Digital media, •Animation, •M&AAssociate Specialist (2) •Financial forensics http://totallyunrelatedrandomanddebatable.blogspot.com/
  • SCL: Specialist Career LadderGeneral incentives & General qualifying/re-privileges: qualifying criteria:a. Extra monetary incentive a. Meet the competency criteriab. Official Specialist / b. Performance min B, PEDConsultant job title. c. Min. 40 training hr/yearc. Higher external training d. Physical contribution:subsidy limit by company. i Mentoringd. Tie-pin or pin ii Write-upe. Certificate iii Speakingf. Additional benefits iv Multimedia recording v R&D publication / Thesis http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Part B-2SALARY STRUCTURES ANDSALARY SURVEYS http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Refer to Benchmarking and Surveys (Workbook) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Options to Develop Salary Structure1. Self – using JE System 1. -> match Job Points ranges to Consultant’s scale 2. Better internal equity, not externally competitive2. Adopt Consultant’s structure 1. -> match internal jobs to new structure 2. Bad internal equity, externally competitive http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Salary Structures1. Narrow Band – 40%-60% between min/max2. Broad Band– 100%-200% between min/max3. Specialist Ladder http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Broad BandPros Cons1. Streamlines Hierarchy 1. No Awareness of2. Facilitates Internal External Market Rates Movement 2. May Lead to Inequities3. Managers have greater 3. Lack of Cost Controls latitude to pay what they 4. Severe reduction in want to an employee opportunities for promotions http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Part B-3VARIABLE AND INCENTIVESCHEMES http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Incentive Scheme Design Agenda 1. Objective 2. Situation Analysis 3. Target Areas to be improved 4. Current Incentive 5. Recommended KPIs 6. Proposed Incentive Scheme 7. Improving Performancehttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • Objective?1. What are you trying to achieve?2. How to measure?3. What is the Gap? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Target group?The following positions are eligible to participate in thisscheme: http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Situation Analysis?1. Retention?2. Working environment?3. The current basic pay?4. Teamwork?5. Supervision/Leadership style?6. Attitude?7. Turnover issues?8. Absenteeism? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Target areas to be improved?1. Increase/Decrease the basic pay?2. Fixed costs?3. Incentives tied to… ??4. Absenteeism?5. Quality improvement?6. Easily understood by employee? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Current incentives?http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Recommended KPIs to be incentivisedOutput Skill (Proficiency) Behavioural (Attitude)•Manpower productivity •Job Specific Skills •Punctuality•Operational Cost •Absenteeism/Attenda•Safety and nceEnvironment •Teamwork•Quality (e.g. •TurnoverDefect/unit)•Volume http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Proposed incentive scheme1. Fixed Salary Proportion (Fixed Personal Income, Variable Team Bonus)Total Payout= Fixed Quantum + Team Based Bonus http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Proposed incentive scheme1. Fixed Salary Proportion (Fixed Personal Income, Variable Team Bonus)Example:1. Budgeted incentive = 5.8 months of basic payroll2. Fixed Quantum = 0.4 months (for example) [4.8 mths ÷12]3. Monthly Total Payout = Basic Pay + Fixed Quantum = RM500 + 0.4 months = RM500 + RM200 = RM7004. Amount available for bonus = 5.8 months - 4.8 months = 1.0 month http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Proposed incentive scheme 1. Fixed Salary Proportion (Fixed Personal Income, Variable Team Bonus)Annual Bonus Incentive Matrix Production Operator Team Leader Group Leader TeamPerformance Rating Annual Bonus Annual Bonus Annual Bonus 5 1.50 months 2.00 months 2.50 months 4 1.25 months 1.75 months 2.25 months 3 1.00 months 1.50 months 2.00 months 2 0.75 months 1.25 months 1.75 months 1 0.00 months 0.00 months 0.00 months http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Proposed incentive scheme2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus) Total Payout = Basic Pay + Monthly Personal Target Achievement + (Personal Target Achievement x Team Performance Multiplier) Monthly Incentive Payout Matrix Personal Rating Monthly Incentive 5 1.2 months 4 1.0 months 3 0.8 months 2 0.5 months 1 0.0 months http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Proposed incentive scheme 2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus)Example: Production Operator Monthly Basic Pay (RM) PersonalPerformance Rating 500 550 600 650 700 750 800 5 1,100 1,210 1,320 1,430 1,540 1,650 1,760 4 1,000 1,100 1,200 1,300 1,400 1,500 1,600 3 900 990 1,080 1,170 1,260 1,350 1,440 2 750 825 900 975 1,050 1,125 1,200 1 500 550 600 650 700 750 800 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Proposed incentive scheme 2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus)Annual Bonus Incentive Matrix Production Operator Team Leader Group LeaderPersonal Rating Monthly Incentive Monthly Incentive Monthly Incentive 5 1.2 months 1.70 months 2.20 months 4 1.0 months 1.50 months 2.00 months 3 0.8 months 1.30 months 1.80 months 2 0.5 months 1.00 months 1.50 months 1 0.0 months 0.00 months 0.00 months http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Proposed incentive scheme2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus) Annual Bonus Incentive Matrix (in months) Team Performance 5 4 3 2 1 Personal Performance 5 2.4 1.8 1.2 0.6 0 4 2 1.5 1 0.5 0 3 1.6 1.2 0.8 0.4 0 2 1 0.75 0.5 0.25 0 1 0 0 0 0 0 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Proposed incentive scheme 3. Team Ratio Plan (Team-based Income, No Annual Bonus) Total Payout = Basic Pay + Monthly Incentive Payout (No Annual Bonus)Monthly Incentive Payout Matrix Production Staff Team Leader Group Leader Team Rating Monthly Incentive Monthly Incentive Monthly Incentive 5 2.00 months 2.25 months 2.50 months 4 1.50 months 1.75 months 2.00 months 3 1.20 months 1.45 months 1.70 months 2 0.75 months 1.00 months 1.25 months 1 0.00 months 0.00 months 0.00 months http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Proposed incentive scheme 3. Team Ratio Plan (Team-based Income, No Annual Bonus)Example: Production Operator Monthly Basic Pay (RM) TeamPerformance Rating 500 550 600 650 700 750 800 5 1,500 1,650 1,800 1,950 2,100 2,250 2,400 4 1,250 1,375 1,500 1,625 1,750 1,875 2,000 3 1,100 1,210 1,320 1,430 1,540 1,650 1,760 2 875 963 1,050 1,138 1,225 1,313 1,400 1 500 550 600 650 700 750 800 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Improving PerformancePerformance Intervention Methods Effectiveness ofImprovement Area Direct Incentive MeasuresSkill Deficiency •Off site Training Yes •Job redesign •On-the-job training •Process RedesignPerformance Punishing •Review performance management No processes •Study on supervision style of Team Leader •Remove punishmentNon-performance •Proper performance monitoring Norewarding process •Arrange positive consequenceCoordination & •Communication of clear direction PartlyTeamwork and goals •Shared Accountabilities •Focus on Team CompetenciesBehavioural •Communication of clear behavioural Partly indicators •Focus on Behavioural •Coaching and CounsellingSupervision Style •Leadership styles of team leaders Yes but not for team •Regular tracking on morale of team members members
  • • Refer Sales incentive design examples http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Dangers of Direct Incentives1. lessen internal motivation,2. switch to mercenary mode,3. do something and do not do something else,4. bribe and fraud culture,5. easier for competitors to recruit,6. lessen teamwork & helpful culture,7. less and less impact for same value,8. mockery of base salary and employment contract,9. rebellion from non-incentivised staff,10. end up incentivising everyone for everything?, http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Non-Monetary Rewards and Benefits http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Reminder…Reality #1 Cash is King http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Reminder …Reality #2 Tangible C&B Attraction http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Reminder …Reality #3 In-Tangible C&B Retention http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Reminder …Reality #4 In-Tangible C&B Tipping Point for Attraction/Retention http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Benefits Analysis and Comparison http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Total Remuneration Composition Total Remuneration Composition for Executive Director & Executive Chairman Average Annual Total Remuneration Value (RM)Market Reference Job Grade 45% 6% 49% 12 - 16 RM 1,016,000 46% 12% 42% 10 - 11 RM 535,000 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage Base Salary Fixed Cash Allowance Benefits-in-kind http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Refer Benefits comparison Table http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Fixed Cash Allowances Market Practice on Fixed Cash Allowance for Executive Director and Executive Chairman1Contractual/Regular Bonus 54%2 Director Fees 31% These Board of Directors related3 Board Allowance 15% Allowances/Fees are not a common practice among the Companies4 Attendant Allowance 23% as Base Salary is provided.5 Housing Allowance 38%6 Transport Allowance 23%7 Entertainment Allowance 15%8 Cost of Living Allowance 8%9 Other Allowances 15% 0% 10% 20% 30% 40% 50% 60% % of Companies http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Benefits-in-Kind Benefits-in-kindPracticefo E r xecutiv D e irectoran E d xecutiv C anP e hairm ositions Increm ent 98%16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 StockOption/Profit Sharing 16% Additional E PF 70% R ent Schem etirem e 30% Gratuity 20% M benefits edical 100% G Personal A roup ccident Insurance 80% G L Insurance roup ife 70% C panyH om ouse 20% D estichelp om 30% B G ody uards 15% H ousingL oan 35% C panyC om ar 100% C L ar oan 25% C M bership lub em 100% L Passage eave 98% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% http://totallyunrelatedrandomanddebatable.blogspot.com/
  • The 51.28% Theory• Resign = Push + Pull > 51.28%• If staff is Happy: => 0 + Pull > 51.28% http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Retention RetentionExperience Swing Ex Oppose http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Retention 1: ExperienceLoyalty = Experience vs. Expectations Solution Strategy: Talent Management Plan http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Loyalty 1: Experience • Talent P/P Grid, SP Table, Management Plan PDP, Premium, SelectionP/P Grid, Q12,PA, SDP, SP Evaluation Philosophy Development OJT, Mentoring, Big-5, LP, PDP, Motivation SDP, Projects, Q12, C&B, ACDP, SCL, Transfers, Events, Recognition http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Loyalty 2: SwingLoyalty = Best alternative at the current moment until I find another alternative Solution Strategy: Improve your Talent Management Plan, Try Your Best, or Live with It http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Loyalty 2: SwingSwing Talents are “loyal” because:• Individual Relationships• Convenience (at that point in time)• Contractually tied-up• Direct Incentives*• No better alternative• Subordinates• No known alternative• CV friendly http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Post-Recession RetentionExperience Swing Ex Oppose Post-Recession http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Swing Loyalty: Try Your Best…1. Over Promote 9. “Position” the2. Loans competition3. Spot Bonuses 10.Sell the Dream4. Block recruiters 11.Give them a Best5. The Spouse Friend6. Toys 12.Internal Trainer7. Glorified Titles8. Forced Ambassador http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Talent Strategy: C&B1. Eliminate Staff Awards 8. Additional Profit Sharing2. Eliminate Staff Trips points for TP3. Eliminate HOD trips 9. ↑ Pay for Performers,4. Remove Salary structure ↓ pay for Non- limitations for TP Performers5. Premium Group Pay 10. Additional % during annual increments6. Year-round promotions/increment 11. Special Allowances7. Spot Bonus Pool 12. SCL Allowances 13. Flexitime http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Exercise: What ‘Caring’ C&B policies do you have to attract and retain talent? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Values Driven C&B1. Performance2. Differentiation3. Caring4. Non-tangibles & Segmentation http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Demographic Segmentation - General Veterans (Pre-Boomers) 1934-1945 Gen Y Boomers(Millennials, Netster) 1945-1960 1980+ Gen X (Cusper, Buster) 1960 - 1980 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Demographic Segmentation - others1. Women, Working Mothers2. Youtube generation3. Working retired4. Social Activists5. Work/Life balancers6. Industry (ICT, Advertising, Engineer, Accounting, Lawyer, etc.) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What needs work? High Fun place to work Training For people like me OpportunitiesTarget Segment Importance to Attractive Location Familiarity with Tasks Innovative company Career Opportunities Overseas Opportunities High Salary Low Weak Strong Current Attractions http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What needs work? High Fun place to work Training For people like me OpportunitiesTarget Segment Importance to Attractive Location Familiarity with Tasks Innovative company Career Opportunities Overseas Opportunities High Salary Low Weak Strong Current Attractions http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Caring (1/2) Staff Loans/ Discounts Uniform Subsidies Lactation Allowance/ Room COLAExtensive Caring Subsidized Training Lunch Free Flexitime Carpark Work/Life SRC Balance http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Caring (2/2) Add. Internal Transfer/ Maternity Selection Secondment Leave Free IT Paternity Classes LeaveDiscount Caring Van PnB Transport & OOP (KTM) Emergency Sub. Yoga/ Loan Study & Line Dance Library & Exam Magazines Leave http://totallyunrelatedrandomanddebatable.blogspot.com/
  • For Starting Up… HighImportance to Segment Target Low http://totallyunrelatedrandomanddebatable.blogspot.com/
  • For Starting Up… Weak Strong Current Brand http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Part CINTANGIBLE BENEFITS &STAFF MOTIVATION http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Employer BrandingATTRACTING ANDPOSITIONING http://totallyunrelatedrandomanddebatable.blogspot.com/
  • The real goal of Marketing and Branding Understanding our role in the whole scheme of things http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Exercise: Why do we need ‘Branding’? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What is the purpose of Marketing & Branding?Ultimate Objective of Marketing:“Get more people, to buy morethings, more frequently, at higherprices.”“Retention and Loyalty are useless ifNo Conversion is happening.” Sergio Zyman http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What is the purpose of Marketing & Branding?“Retention and Loyalty are useless ifNo Conversion is happening.”“Communication is useless if NoConversion is happening.” http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What is the Objective?1.Comm = Relationship (something like Dating)2.Comm ≠ Media glitz3.Comm ≠ ATL/BTL/BwTL/ArTL/FTL4.Comm ≠ CSR5.Comm = Get more people, to buy more, more frequently, at higher prices http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Intro“Retention and Loyalty are useless ifNo Conversion is happening.”“Retention and Loyalty are useless ifNo Performance is happening.” http://totallyunrelatedrandomanddebatable.blogspot.com/
  • IntroLoyalty is misleading…• Heavy Consumption ≠ Loyalty• Loyalty ≠ Heavy Consumption• Good Performance ≠ Retention• Retention ≠ Good Performance http://totallyunrelatedrandomanddebatable.blogspot.com/
  • So… are we in business for Retention or Performance? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Corporate & Employer BrandCorporate Brand Right Type of People Employer Brand http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Why Employer Branding? 1.AttractEmployer 2.Retain Branding 3.Motivate 4.Focus http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Components of Branding Positioning, Execution, and Communicationhttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • Components of Branding Positioning Execution Communication http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Brand PositioningSegmentation, Targeting, Basics, Differentiatorshttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • Positioning“Hope is not a strategy” John Maxwell http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Positioning• For who? – Segmentation, Targeting• Your Offer?• Key Differentiator? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Two Types of Segmentation for HRM1. Demographic segmentation2. Talent segmentation http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Recruitments of Gen X and Gen YUNDERSTANDINGDEMOGRAPHICS http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Demographic Segmentation - General Veterans (Pre-Boomers) 1934-1945 Gen Y Boomers(Millennials, Netster) 1945-1960 1980+ Gen X (Cusper, Buster) 1960 - 1980 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Generational Differences In The Workplace• Now 4 Generations in the workplace• Events and conditions each of us experience during our formative years help define who we are and how we view the world.• Each Generation has different value systems – Values drive behavior.• We need to understand each other so we can value what each generation brings to the team.• In 10 years, 40% of current workforce will retire. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Generational Thoughts• X&Y act first, evaluate later – they know more than older generations knew at their age. Thrive in speed and chaos. May think about having multiple careers. – May not Actively Listen to Builders & Boomers, missing valuable info.• Builders & Boomers – paid their dues, have vast experience & knowledge. – May question how much X&Y know, undervalue their quick decision-making, don’t think of them as colleagues and collaborators because assume they’re inexperienced. – May think X&Y are too impatient –quick to throw out tried & true strategies .• Loyalty to Co. – Builders & Boomers may value; X&Y may not• Challenge Authority – Builders & Boomers may not, X&Y may.• Work Life Balance: Builders & Boomers may do without, X&Y may not do without. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Generational Thoughts• Builders may see Boomers as self absorbed & prone to sharing too much info.• Boomers may see Builders as dictatorial and rigid.• Y may view X as too cynical and negative.• X may view Y as too spoiled and self- absorbed.• X may view Boomers as being too Politic – say right thing to right person. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What Bonds GenerationsAll Generations want:Work-Life Balance – flexible hours, fewer hours• Younger Generations – may be less ambitious in traditional terms, less willing to make tradeoffs - family focus.• Boomers – want time for hobbies or fitness, care for aging parents, family, start own business.Timely, Constructive FeedbackSense of Community with OthersEffective Projects and MeetingsUse their TalentsEnhance their Skills http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Things Research Says Gens Want to be Valued for• Builders: “Your experience is respected – It’s valuable to hear what’s worked in the past.”• Boomers: “You are valuable & worthy. Your contribution is unique and important to our success.”• Xers: “Let’s explore some options outside the box – your technical expertise and is a big asset.”• Y’s: “You will be collaborating with other bright, creative people – you have really rescued this situation with your commitment.” http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What All Generations Need to DoSeek balance between• building on traditional procedures and• supporting flexibility and creativity to effectively blend the generations work ethics.• Allow choices• Openly explore ideas• Value different points of view• Encourage active listening• Share expertise• Share recognition and appreciation• Value hard work• Build in humor and fun into learning.• Accommodate the needs and values of all generations. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What Generation’s Next?The Millenniums – They are in secondary school right now…coming out soon…in about 10 years or so 213 http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Demographic Segmentation - others1. Women, Working Mothers2. Youtube generation3. Working retired4. Social Activists5. Work/Life balancers6. Industry (ICT, Advertising, Engineer, Accounting, Lawyer, etc.) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Exercise: Who is your target?Company Segmentation Employer Segmentation http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Exercise: Employer Segmentation What do you know aboutWho are your Targets? them? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Employer BrandingWHAT NEEDS WORK? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Basics & Differentiators DifferenSegments tiators Targets Basics Targets http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Demographic Segment: Example Exercise1. Gen Y Refer: • GEN Y ranking of2. ICT job considerations • 10 non-monetary3. Women benefits to attract and retain top developers http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What needs work? High Fun place to work Training For people like me OpportunitiesTarget Segment Importance to Attractive Location Familiarity with Tasks Innovative company Career Opportunities Expected success of application High Salary Low Weak Strong Current Brand http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What needs work? High Fun place to work Training For people like me OpportunitiesTarget Segment Importance to Attractive Location Familiarity with Tasks Innovative company Career Opportunities Expected success of application High Salary Low Weak Strong Current Brand http://totallyunrelatedrandomanddebatable.blogspot.com/
  • For Starting Up… HighImportance to Segment Target Low http://totallyunrelatedrandomanddebatable.blogspot.com/
  • For Starting Up… Weak Strong Current Brand http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Activity Grid to determine HRM prioritiesIncrease (↑) Create (+)What are features/ What are features/ activities/services to activities/services to increase? introduce?Reduce (↓) Eliminate (-)What are features/ What are features/ activities/services to activities/services to reduce? eliminate? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Exercise: Activity GridIncrease (↑) Create (+)Reduce (↓) Eliminate (-) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Part DTHE TALENT & PERFORMANCEMANAGEMENT SYSTEM http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Talent & Performance Management P/P Grid, SP Table, PDP, Premium, SelectionP/P Grid, Q12,PA, SDP, SP Evaluation Philosophy Development OJT, Mentoring, Big-5, LP, PDP, Motivation SDP, Projects, Q12, C&B, ACDP, SCL, Transfers, Events, Recognition http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Why do we hate Performance Appraisals? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Complaints about Performance Appraisals As an As an Mgmt/HRAppraisee Appraisor http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Complaints about Performance Appraisals As an Appraisee• Bias• Different Standards• Surprise• Subjective• No linkage*• No differentiation• Secretive• No follow up• No control http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Complaints about Performance Appraisals As an Appraiser• Cannot remember• Tedious• Subjective• Right targets• Scoring Competencies*• Defensive staff• No $$ to differentiate• Prejudices• Results or Activities http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Complaints about Performance Appraisals Mgmt/HR• Flexible or Control?• MBO or Character?• Best Practice or Fit Culture?• Backward or Forward?• Quarterly Results or Long-term?• No $$ to differentiate*• Perfect System, Bad performance• Recency and Halo effects• Untrained Appraisers http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Complaints about Performance Appraisals - Summary1. Process problem2. Form problem3. People problem http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What’s the Difference?Performance Appraisal Performance Management http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Coaching & CounselingMonth 1 Month 2-11 Month 12Performance PerformancePlanning ? Appraisal http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What is the OBJECTIVE of a Performance Management System?• What is the ultimate objective of a Performance Management System?• ‘Performance’ – achievement,• ‘Management’ – controllable, improvement• ‘System’ – predictable outcome, autorunSummary?• A Predictable process to Improve Controllable Achievements http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What’s In Between Planningand Execution? Business Model BSC KPIs Budgeting + PlanningPerformance Management System Differentiation Talent Management Succession Planning (Business Continuity) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What is the OBJECTIVE? Business Model Strategy Business Strategy BSC and KPIs ExecutionBudgeting + Planning Performance Management System Differentiation Talent Talent ManagementManagement Succession Planning (Business Continuity) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Intro• Performance Management System = Business Plan Implementation• Succession Planning = Business Continuity Planning• Talent Management = Sustainable Business Performance Management http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Sources of Goals and KPIs• Exercise: List down the sources of Goals and KPIs available in your company: – E.g. Job Description (RDQ) http://totallyunrelatedrandomanddebatable.blogspot.com/
  • MBO – Sources of KRAs and KPIs, Targets1. Department Scorecard [E3],2. Employee’s Job Description,3. Department SOP,4. Department Quality Objectives,5. Corrective Action Requests (CAR),6. Preventive Action Requests (PAR), or7. Special Projects relevant to the employee. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Basics of the Balanced Scorecard http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Reminder: Why BSC? • Reason 1: Balanced • Reason 2: Cause-and-Effectwww.myCNI.com.my http://totallyunrelatedrandomanddebatable.blogspot.com/ www.OOBEY.com
  • Cause and Effect Financial Revenue Cost Margin Cash Flow AssetCustomers Satisfaction Base Share Gain Positioning Adjacent New Retention Market BusinessInternal Process Investment Operational Product Customer Strategy Excellence Leadership IntimacyLearning & Growth Competencies Information Systems Motivation, empowerment, alignment http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Cause and Effect: An ExampleFinancial Revenue Growth Market Value ProductivityCustomers /Distributors Products/ Channel Target Services Strategies MarketsInternal Supplier & Department ExternalProcess Alliances Operations InvolvementLearning & TechnologyGrowth Human Information & Resources Systems & Intelligence Processes http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Example: 1st Level BSC & KPIsFinancial Profit after Tax. Revenue. Cash-to-cash cycle. Operating cash flowCustomers / Customer Complaints. Customer Acquisition Rate. ProductDistributors Availability. Product Quality & Service. Renewal Annual Subscription. Distributor Rank Achievement. No. of Active Distributor. No. DC/Regional Sales. Distributor with commission Customer Database Availability. Accuracy of Forecast Planning.Internal Continuous Improvement. Response Time to Customer Needs.Process Perfect Order Fulfillment. Inventory Turnover. Number of Effective Sponsoring Program. On Time Delivery. No. of Effective Training. Number of Effective A&P % of staff evaluated on Core Competency Framework. % of staffLearning & with Career Development Plans. No. of training hours completedGrowth per staff. % of staff with access to strategic information. Q12 Index. % staff evaluated on Culture alignment http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Leading and Lagging KPIshttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • Cause and EffectGoal: What are my Vital Signs?Healthy! •Blood Pressure? •Temperature? •Cholesterol? •Fever? •Chest Pain? •Dizziness? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Cause and Effect Also known as:Leading vs. Lagging Indicators http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Exercise: Leading vs. LaggingLagging? Leading?• Monthly Sales• Customer Retention• Project success• Event attendance• ARPU• Customer Satisfaction• Dealer Satisfaction http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Cause & Effect: StrategyFinancial Customer“To satisfy our “Who are our targetstakeholders, what customers?Financial objectives must What is our valuewe accomplish?” proposition?”Learning & Growth Internal Process“What capabilities and tools “To satisfy our customers, indo our employees require to which internal businesshelp them execute our processes must we excel?"strategy? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Top Performers and the ‘No Contribution’ Problem Historical, Outcome, Results, 1stLagging Level, Usually Financial or tangible, Quarterly and Annually Current, Indicators, Drivers, 2ndLeading Level onwards, usually non- financial or intangible, Weekly, Monthly and Quarterly http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Developing ‘Driver’ KPIs Customer Retention % Lagging, 1st Level Customer Satisfaction Leading, 2nd Level IndexOn time deliveryTime to market for new products Leading, 3rd LevelTNA % onwardsDefect levels, warranty claims http://totallyunrelatedrandomanddebatable.blogspot.com/
  • What is the Objective? ‘Do-or-Die’ KPIs for CNI• Revenue• ARPU• Sponsoring• Retention• Commission Plan (BDP)• Product• Corporate Image http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Exercise: What are the Key 1st Level KPIs for your Industry? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • Exercise: Developing your own Leading and Lagging KPIs http://totallyunrelatedrandomanddebatable.blogspot.com/
  • B2B/B2G BSC Matching Customer/Client/ Government BSC Financial Revenue Cost Margin Cash Flow Asset Customers Satisfaction Your BSC Base Share Gain Positioning Adjacent New Retention Market Business Financial Revenue Cost Margin Cash Flow Asset Internal Process Customers Satisfaction Investment Operational Product Customer Strategy Excellence Leadership Intimacy Base Share Gain Positioning Adjacent New Retention Market Business Learning & Growth Competencies Information Motivation, Internal Systems empowerment, Process Investment alignment Operational Product Customer Strategy Excellence Leadership Intimacy Learning & Growth1. Draw your ‘customer’s’ BSC Competencies Information Systems Motivation, empowerment, alignment2. Match their CP/IP with your CP3. Identify IPs that support/conflict http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Performance Standardshttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • MBO StandardsA ExcellentB GoodC AverageD PoorE Useless http://totallyunrelatedrandomanddebatable.blogspot.com/
  • MBO StandardsA ExcellentB GoodC Average GoodD PoorE Useless http://totallyunrelatedrandomanddebatable.blogspot.com/
  • MBO StandardsA Excellent ExcellentB Good Very GoodC Average GoodD Poor Not GoodE Useless Commit Suicide http://totallyunrelatedrandomanddebatable.blogspot.com/
  • MBO StandardsA Excellent Consistently achieved 4 for 3 quartersB Very Good Higher than planned resultsC Good Achieved Planned ResultsD Not Good Did not fully meet planned resultsE Commit Unacceptable performance Suicide Refer: Priority, Targets and Standards http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Rating Scale .H 5HVXOWV .3,V 2EMHFWLYHV(QVXUH WKH DFKLHYHPHQW RI FXUUHQW 3URGXFWLRQ PLOOLRQ NLORJUDP RI 3URGXFW $SURGXFWLRQ WDUJHWV ZLWKLQ FRVW WDUJHWVILJXUHV :LWKLQ EXGJHWHG IDFWRU FRVWVSHFLILFDWLRQ E UHJXODUO 9DULDQFH LQ LH 50 PLOOLRQPRQLWRULQJ SURGXFWLRQ UHSRUWV DQG RSHUDWLQJ H[SHQVHGLUHFWLQJ FRUUHFWLYH DFWLRQ ZKHUH EXGJHWQHFHVVDU 5 ≥ 105 million kilo of A 4 98 million kilo of A 3 95 million kilo of A 2 94 million kilo of A 1 % 93 million kilo of A http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Performance Planning: KPIs and Critical Goals• Refer Workbook: Performance Planning Worksheet http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Performance Planning and KPIs:Cascading from Company-Department- Individual http://totallyunrelatedrandomanddebatable.blogspot.com/
  • E3 – Department BSC Financial Perspective Goals Measures Targets CAPEX OPEXQualityInnovationOn TimeDelivery http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Individual Performance 1.0 Key 2.0 3.0 4.0 Merit* 5.0 Rating 6.0 Results Goals Achievem (Merit x AppraiserArea (Max and ents and Weight) Overall 6) Targets Efforts for Comments for Q1 Q1 / Feedback http://totallyunrelatedrandomanddebatable.blogspot.com/
  • CascadingCustomer Perspective Goals Strategies Targets Direct IndirectBase MktRetentionShare Gain MktNew BDBusiness http://totallyunrelatedrandomanddebatable.blogspot.com/
  • E3 – Department BSCCustomer Perspective –Marketing Department Goals Strategies Targets CAPEX OPEXBaseRetentionShare Gain Budgeting http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Individual MBO Re: Base Employee A – Marketing Executive Retention KRAs Action Targets Weight Score Plans (%)Class ACustomerRetentionClass BCustomerRetentionCompetitionCrossovers http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Start Up The end of the Beginninghttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • The Wish List1. Health and Wellness2. Work/Life Balance3. Mobility4. Innovation http://totallyunrelatedrandomanddebatable.blogspot.com/
  • For Starting Up…1. Get the Business Strategy right2. Link C&B to Strategy (e.g. BSC)3. Clarify the C&B Philosophy4. Strengthen Performance Management System5. Redirect Funds ($$)6. Design simple processes7. Develop and Reward focused on Talent groups8. Communicate throughout http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Problem with C&B…“Good news for stockholders can be bad news for other stakeholders.” Gregory Miller, Assoc. Prof., Harvard Business School. http://totallyunrelatedrandomanddebatable.blogspot.com/
  • In the end…• Great Wall of China – humans are the weakest link – bad treatment of staff will lead to weak link i.e. easier to bribe, easier to con, etc; – bad treatment examples: insulting, lose face, broken promises, no dignity, public criticism, restructure without communication http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Other thoughts…1. Big matters/Small 5. Flat Structure? Matters 6. The Jerk Boss2. Differentiate of Die 7. All aspects3. Define “Talent” 8. Hire Strict4. No “Jerk” rule http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Summary Segmented & TargetedAttraction, Retention and Succession STARS™ http://totallyunrelatedrandomanddebatable.blogspot.com/
  • End Notes The end of the Beginninghttp://totallyunrelatedrandomanddebatable.blogspot.com/
  • Are your employees willing to die for you? http://totallyunrelatedrandomanddebatable.blogspot.com/
  • • 31 people died and 28 were Taj Mumbai, 2008 hurt • 1,200 and 1,500 guests escaped • 11 Taj Mumbai employees died rescuing guests • Restaurant and banquet staff rushed people to safe locations such as kitchens and basements. • Telephone operators stayed at their posts, alerting guests Taj Mahal Palace, Mumbai to lock doors and not step November 26, 2008 out. • Kitchen staff formed human shields to protect guestsHarvard Business Review, December 2011 during evacuation attempts“The Ordinary Heroes of the Taj” by Rohit Deshpandé and Anjali Raina http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Taj Mumbai, 2008• Seek fresh recruits rather than • Train workers for 18 months, not lateral hires. just 12.• Hire from small towns and • Ensure that employees can deal semiurban areas, not metros. with guests without consulting a• Recruit from high schools and supervisor. second-tier business schools • Teach people to improvise rather rather than colleges and premier than do things by the book. B-schools. • Insist that employees place• Induct managers who seek a guests’ interests over the single-company career and will be company’s. hands-on. • Have incumbent managers, not• Focus more on hiring people with consultants, conduct training. integrity and devotion to duty than • Use timely recognition, not on acquiring those with talent and money, as reward. skills. Harvard Business Review, December 2011 “The Ordinary Heroes of the Taj” by Rohit Deshpandé and Anjali Raina http://totallyunrelatedrandomanddebatable.blogspot.com/
  • Thank You. soft copy of slides:http://totallyunrelatedrandomanddebatable. blogspot.com/