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The Role of People Management, Performance and Incentives in more effective Lab Safety and Security

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LAB Design Asia 2008 Conference, Singapore …

LAB Design Asia 2008 Conference, Singapore

*The role of proper people management in ensuring lab safety and security
* The ‘People’ problem in lab security and how to deal with it
* Enhancing lab security by proper performance management of lab personnel
* Designing incentive schemes that encourages lab safety
* Using the right management and leadership methods to supervising lab personnel in order to ensure lab security

Published in Business , Technology
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  • 1. THE ROLE OF PEOPLE MANAGEMENT, PERFORMANCE AND INCENTIVES IN MORE EFFECTIVE LAB SAFETY AND SECURITY Case Study, Concepts and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com
  • 2. Intro: CNI
    • 19 years old
    • Core Business: MLM
    • Others: Contract Manufacturing, Export/Trading, eCommerce
    • Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan
    • Staff force: ± 500
    • Distributors: 250,000
    • Products: Consumer Goods and Services
    www.myCNI.com.my www.OOBEY.com
  • 3. 1. The role of proper people management in ensuring Lab Safety and Security www.myCNI.com.my www.OOBEY.com
  • 4. Alignment: 4-Wheels Model Philosophies Corporate Objective Performance Objectives Structure Resources Leadership Person
  • 5. Alignment: Why is it important?
    • Mamak stall
    www.myCNI.com.my www.OOBEY.com
  • 6. The McPlaybook*
    • Make it easy to eat
    • 50% drive-thru
    • Meals held in one hand
    • Make it easy to prepare
    • High Turnover
    • Tasks simple to learn & repeat
    • Make it quick
    • “ Fast Food”
    • Tests new products for Cooking Times
    • Make what customers want
    • Prowls market for new products
    • Monitored field tests
    *Adapted from: Businessweek , Februrary 5 th 2007 www.myCNI.com.my www.OOBEY.com
  • 7. Alignment: Framework
    • Equal / Fair
    • Happy / Productive
    • Performance vs Potential
    • Retention / Engagement
    Philosophies www.myCNI.com.my www.OOBEY.com
  • 8. Alignment: Framework
    • Org Structure
    • Job Design
    • C&B
    • Policies & procedures
    • Decision making
    • Job fit
    • Management Systems
    • BSC and KPIs
    • Decentralized & Empower
    www.myCNI.com.my www.OOBEY.com Structure
  • 9. Strategy: Framework
    • Tools
    • Physical facilities
    • Peer support
    • Information
    • T&D Programs
    • Mentors
    • Guides
    • ICT
    • OJT
    www.myCNI.com.my www.OOBEY.com Resources
  • 10. Strategy: Framework
    • Role modeling
    • Vision/Mission/Philosophy
    • Leadership Style
    • Delegation & Empowerment
    • C&B, Promotions
    • Sense of Urgency
    • Speak regularly about Performance
    www.myCNI.com.my www.OOBEY.com Leadership
  • 11. Strategy: Framework
    • Recognition
    • Recruitment
    • Training
    • Profit sharing
    • Values
    • Motivation
    • Self Efficacy
    • Awareness
    • Useful Competencies
    • Career aspirations
    • Attribution (control)
    www.myCNI.com.my www.OOBEY.com Person
  • 12. Alignment: 4-Wheels Model Philosophies Corporate Objective Performance Objectives www.myCNI.com.my www.OOBEY.com Structure Resources Leadership Person
  • 13. 2. The ‘People’ Problem In Lab Security And How To Deal With It www.myCNI.com.my www.OOBEY.com
  • 14. The ‘People’ Problem
    • Right Person, Wrong Job (5%)
    • Wrong Person, Right Job (20%)
    • Wrong Person, Wrong Job (1%)
    • Right Person, Right Job, Managed Wrongly (74%)
    www.myCNI.com.my www.OOBEY.com
  • 15. Understanding Yourself and Others - Personalities www.myCNI.com.my www.OOBEY.com Closed Open People Task Perfect: Melancholy Powerful: Choleric Popular: Sanguine Peaceful: Phlegmatic
  • 16. Understanding Yourself and Others - Motives www.myCNI.com.my www.OOBEY.com Power (nPow) Achievement (nAch) Affiliative (nAff)
  • 17.
    • Beating a Dead Horse
    www.myCNI.com.my www.OOBEY.com
  • 18. Most Common Desperate Performance Improvement methods
    • Send for more Training
    • Enforce more Incentives (positive/negative)
    www.myCNI.com.my www.OOBEY.com
  • 19. Mager and Pipe
    • Analyzing Performance Discrepancies
    www.myCNI.com.my www.OOBEY.com
  • 20. 3. Enhancing Lab Security by Proper Performance Management of Lab Personnel www.myCNI.com.my www.OOBEY.com
  • 21. Complaints about Performance Appraisals As an Appraisee As an Appraisor Mgmt/HR www.myCNI.com.my www.OOBEY.com
  • 22. Complaints about Performance Appraisals
    • Bias
    • Different Standards
    • Surprise
    • Subjective
    • No linkage*
    • No differentiation
    • Secretive
    • No follow up
    • No control
    As an Appraisee www.myCNI.com.my www.OOBEY.com
  • 23. Complaints about Performance Appraisals
    • Cannot remember
    • Tedious
    • Subjective
    • Right targets
    • Scoring Competencies*
    • Defensive staff
    • No $$ to differentiate
    • Prejudices
    • Results or Activities
    As an Appraiser www.myCNI.com.my www.OOBEY.com
  • 24. Complaints about Performance Appraisals - Summary
    • Process problem
    • Form problem
    • People problem
    www.myCNI.com.my www.OOBEY.com
  • 25. What is Performance Appraisal used for? Reward? Discipline? Development? Motivation? Promotion? Monitor? www.myCNI.com.my www.OOBEY.com
  • 26. Performance Management Performance Appraisal Performance Development Performance Measurement Common terms and definitions www.myCNI.com.my www.OOBEY.com
  • 27. What is the OBJECTIVE?
    • What is the ultimate objective of a Performance Management System?
    • ‘ Performance’ – achievement,
    • ‘ Management’ – controllable, improvement
    • ‘ System’ – predictable outcome, autorun
    • Summary?
    • A Predictable process to Improve Controllable Achievements
    www.myCNI.com.my www.OOBEY.com
  • 28. What is Performance Appraisal used for? Reward? Discipline? Development? Motivation? Promotion? Monitor? www.myCNI.com.my www.OOBEY.com
  • 29. Which system should we use? Behavior-based Knowledge/Skill based Results-based Trait-based Managing Performance = Managing Expectations What’s YOUR expectation? Activity based www.myCNI.com.my www.OOBEY.com
  • 30. Why BSC?
    • Reason 1: Balanced
    • Reason 2: Cause-and-Effect
    www.myCNI.com.my www.OOBEY.com
  • 31. BSC: Balanced & Cause-and-Effect Financial “ To satisfy our stakeholders, what Financial objectives must we accomplish?” www.myCNI.com.my www.OOBEY.com Internal Process “ To satisfy our customers, in which internal business processes must we excel?" Customer “ Who are our target customers? What is our value proposition?” Learning & Growth “ What capabilities and tools do our employees require to help them execute our strategy?
  • 32. Performance Management for Change
    • Review Performance & Results
    o Grievance level o Absenteeism o Discipline issue o Poor work ethics Degree of Clarity of Job Results Vision Led Performance driven High Low High Level of Trust & Commitment (Between Subordinate & Boss) UNCLEAR
    • Discuss & Agree on Account
    • Objectives & Key Measures
    • Standards for Performance
    • Provide Coaching & Counselling
    RESULTS DRIVEN
    • High Level of employee empowerment
    • High Employee Performance
    • High Employee Satisfaction
    • High Employee Involvement
    • Challenging Working Environment
    • Optimum HRM Cost Structure
  • 33. District Engineer, TNB Duties and Responsibilities If stated as Accountabilities then the job must produce : Control, operate and maintain the District Distribution System Ensure uninterrupted supply to consumers in the district by operating the District Distribution System. Manage major supply projects to customers in the district. Ensure satisfaction of the major customers in the district by managing supply and Distribution. Supervise all technical staff in the district. Ensure high performance and Productivity of technical staff by adopting proper human resource management methods on selection, training, coaching, counselling and motivation. Plan and design the High voltage system Ensure availability of adequate supply for future needs of industries in the district by planning and designing the High voltage System
  • 34. MBO Standards www.myCNI.com.my www.OOBEY.com Useless Poor Average Good Excellent E D C B A
  • 35. MBO Standards www.myCNI.com.my www.OOBEY.com Useless Poor Average Good Excellent E D Good C B A
  • 36. MBO Standards www.myCNI.com.my www.OOBEY.com Useless Poor Average Good Excellent Commit Suicide E Not Good D Good C Very Good B Excellent A
  • 37. MBO Standards www.myCNI.com.my www.OOBEY.com Commit Suicide Not Good Good Very Good Excellent Unacceptable performance E Did not fully meet planned results D Achieved Planned Results C Higher than planned results B Consistently achieved 4 for 3 quarters A
  • 38. MBO Target Setting - Objectives and Measures
    • SMART Targets
    • Specific (definite objective and purpose to be achieved)
    • Measurable (by definite observation and a certain time one should be able to tell whether or not it is attained)
    • Achievable (Must be within reach of the employees, e.g. to meet stated deadlines, neither too high nor too low)
    • Rewarding (Rewarding means it must be satisfying to you, no one else)
    • Time phased (per quarter, per year. By end of fiscal year, by 15th of November)
    www.myCNI.com.my www.OOBEY.com
  • 39. MBO Target Setting - Objectives and Measures www.myCNI.com.my www.OOBEY.com
    • When is the result to be produced / performed
    Timeliness
    • At what expense the result is produced / performed
    Cost
    • How much / many of the results are produced or performed
    Quantity
    • How well the result is produced / performed
    • Errors and Appearance
    Quality
  • 40. Lagging and Leading KPIs Historical, Outcome, Results, 1 st Level, Usually Financial or tangible, Quarterly and Annually Current, Indicators, Drivers, 2 nd Level onwards, usually non-financial or intangible, Weekly, Monthly and Quarterly www.myCNI.com.my www.OOBEY.com Leading Lagging
  • 41. Developing ‘Driver’ KPIs www.myCNI.com.my www.OOBEY.com Customer Retention % Lagging, 1 st Level Customer Satisfaction Index Leading, 2 nd Level On time delivery Time to market for new products TNA % Defect levels, warranty claims Leading, 3 rd Level onwards
  • 42. Competency Target Setting
    • Initiative
    • Teamwork
    • Problem Solving
    • Leadership
    • Integrity
    What’s the problem here? www.myCNI.com.my www.OOBEY.com
  • 43. Competency Target Setting
    • Initiative
    • Minimize problems quickly without needing to be asked
    • Seeks personal growth and professional self-development
    • Doing more than is required/expected in a job
    • Seeks new and improved solutions and approaches to completing assignments
    • Looks for opportunities to help others and team
    www.myCNI.com.my www.OOBEY.com
  • 44. Competency Standards www.myCNI.com.my www.OOBEY.com Does not meet behavioral standards. Require counseling or disciplinary actions. 1 Meets behavioral standards some of the time. Needs improvement. 2 Meets behavioral standards consistently . Is a good role model for others. 3
  • 45. 4. Designing Incentive Schemes That Encourages Lab Safety www.myCNI.com.my www.OOBEY.com
  • 46. Incentive Problems
    • Problem with Incentives in managing performance:
    • Most people are confused or unsure about compensation tools
    • Some people misuse compensation tools
    www.myCNI.com.my www.OOBEY.com
  • 47. What to Pay?
    • Pay for Service
    • Pay for Job
    • Pay for Performance
    • Pay for Competency
    www.myCNI.com.my www.OOBEY.com
  • 48. Performance and Incentives
    • Internal Equity
      • Internal Job Rates
      • Performance differentials
    • External Competitiveness
      • External Job Rates - Benchmarking
      • Demand & Supply
    www.myCNI.com.my www.OOBEY.com
  • 49. What’s the Difference?
    • Increment
    • Bonus
    • Promotion
    www.myCNI.com.my www.OOBEY.com
  • 50. Compa Ratio Table
    • Use this if your company:
    • Pays for Performance , and
    • Pays for Job rates
    • Def:
    • Mid-Point = Mid Point of Pay Grade
    Grade E2 Min RM2,000 MID RM2,500 Max RM3,000 www.myCNI.com.my www.OOBEY.com
  • 51. Compa Ratio Table www.myCNI.com.my www.OOBEY.com 1 2 3 4 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
  • 52. Compa Ratio Table www.myCNI.com.my www.OOBEY.com 1 2 5% 3 4 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
  • 53. Compa Ratio Table www.myCNI.com.my www.OOBEY.com 0 1 2 2 3 4 5% 7 9 3 7 4 9 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
  • 54. Compa Ratio Table www.myCNI.com.my www.OOBEY.com 0 0 0 2 4 1 0 1 2 4 6 2 3 4 5% 7 9 3 3 5 7 9 12 4 7 8 9 12 15 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
  • 55. Employee Distinction? www.myCNI.com.my www.OOBEY.com 1 2 3 4 5 1 2 3 4 5 6 2 3 4 5% 6 7 3 4 5 6 7 8 4 5 6 7 8 9 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
  • 56. Employee Distinction? www.myCNI.com.my www.OOBEY.com 0 0 0 0 0 1 0 0 1 1 1 2 3 4 5% 7 9 3 3 5 9 12 18 4 5 8 12 15 20 5 > 1.3 ≥ 1.1 - ≤1.3 >0.9 - <1.1 ≥ 0.7 - ≤0.9 < 0.7
  • 57. Dangers of Direct Incentives
    • lessen internal motivation,
    • switch to mercenary mode,
    • do something and do not do something else,
    • bribe and fraud culture,
    • easier for competitors to recruit,
    • lessen teamwork & helpful culture,
    • less and less impact for same value,
    • mockery of base salary and employment contract,
    • rebellion from non-incentivised staff,
    • end up incentivising everyone for everything?,
    www.myCNI.com.my www.OOBEY.com
  • 58. Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff www.myCNI.com.my www.OOBEY.com
  • 59. Possible TEAM-type KPIs and incentives www.myCNI.com.my www.OOBEY.com
    • Recognition for exceptional success (usually not in cash)
    • Individual role considered in normal merit increase process
    Functional
    • Recognition for exceptional individual or team successes in spot awards or share increases
    • Venture profit sharing
    Network/ Partnerships
    • Recognition for exceptional individual contributions in spot wards or salary increases
    • Project / programme Phantom Stock or Profit Sharing
    Project/ Time-based
    • Team competencies recognised in pay for proficiency approach
    • Gainsharing or operational progress incentives
    Process Possible Incentive Type Team Type
  • 60. Team Incentive Models
    • 1. Fixed Salary Proportion (Fixed Personal, Variable Team)
    Performance Incentive = Fixed Quantum + (Balance Sum In Bonus Pool ÷ Headcount) www.myCNI.com.my www.OOBEY.com
  • 61. Team Incentive Models
    • 2. Two-tier Multiplier (Variable Personal, Variable Team)
    Performance Incentive = Personal Target Achievement + (Personal Target Achievement x Team Performance Multiplier) www.myCNI.com.my www.OOBEY.com
  • 62. Team Incentive Models
    • 3. Team Ratio Plan (Variable Personal, Fixed Team)
    Performance Incentive = Team Ratio x Personal Target Multiplier www.myCNI.com.my www.OOBEY.com
  • 63. 5. Using The Right Management And Leadership Methods Supervising Lab Personnel In Order To Ensure Lab Security www.myCNI.com.my www.OOBEY.com
  • 64. Coaching & Counseling www.myCNI.com.my www.OOBEY.com Month 1 Performance Planning Month 12 Performance Appraisal Month 2-11 ?
  • 65. Removing Obstacles for Improved Performance Philosophies Corporate Objective Performance Objectives www.myCNI.com.my www.OOBEY.com Structure Resources Leadership Person
  • 66. Situational Management www.myCNI.com.my www.OOBEY.com Directive Behavior Supportive Behavior Low High High D1 D2 D3 D4 Consulting Participating Delegating Telling
  • 67. PASSE P raise and encourage A sk questions allow the person to S ave Face use S MART goals E ncourage small improvements Performance Evaluation Session: Communication www.myCNI.com.my www.OOBEY.com
  • 68. Managing People performance: A Summary www.myCNI.com.my www.OOBEY.com
  • 69. More Problems….
    • cost of evaluation vs. gains of evaluation
    • defer achievements of a good year to next
    • barely achieve so that next target is not high
    • spread improvements over several years
    • value reducing actions to increase performance
    • most ratings are 4 or 5, new people are 3
    www.myCNI.com.my www.OOBEY.com
  • 70. The ‘People’ Problem Philosophies Corporate Objective Performance Objectives www.myCNI.com.my www.OOBEY.com Structure Resources Leadership Person
  • 71. Thank You. soft copy of slides: www.totallyunrelatedrandomanddebatable.blogspot.com