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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
Intro: CNI ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
1. The role of proper people management in ensuring Lab Safety and Security www.myCNI.com.my www.OOBEY.com
Alignment: 4-Wheels Model Philosophies Corporate  Objective Performance Objectives Structure Resources Leadership Person
Alignment: Why is it important? ,[object Object],www.myCNI.com.my www.OOBEY.com
The McPlaybook* ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],*Adapted from: Businessweek , Februrary 5 th  2007 www.myCNI.com.my www.OOBEY.com
Alignment: Framework ,[object Object],[object Object],[object Object],[object Object],Philosophies www.myCNI.com.my www.OOBEY.com
Alignment: Framework ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com   Structure
Strategy: Framework ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com   Resources
Strategy: Framework ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com   Leadership
Strategy: Framework ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com   Person
Alignment: 4-Wheels Model Philosophies Corporate  Objective Performance Objectives www.myCNI.com.my www.OOBEY.com   Structure Resources Leadership Person
2. The ‘People’ Problem In Lab Security And How To Deal With It www.myCNI.com.my www.OOBEY.com
The ‘People’ Problem ,[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Understanding Yourself and Others - Personalities www.myCNI.com.my www.OOBEY.com   Closed Open People Task Perfect: Melancholy Powerful: Choleric Popular: Sanguine Peaceful: Phlegmatic
Understanding Yourself and Others - Motives www.myCNI.com.my www.OOBEY.com   Power (nPow) Achievement (nAch) Affiliative (nAff)
[object Object],www.myCNI.com.my www.OOBEY.com
Most Common Desperate Performance Improvement methods  ,[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Mager and Pipe ,[object Object],www.myCNI.com.my www.OOBEY.com
3. Enhancing Lab Security by Proper Performance Management of Lab Personnel www.myCNI.com.my www.OOBEY.com
Complaints about Performance Appraisals As an Appraisee As an Appraisor Mgmt/HR www.myCNI.com.my www.OOBEY.com
Complaints about Performance Appraisals ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],As an Appraisee www.myCNI.com.my www.OOBEY.com
Complaints about Performance Appraisals ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],As an Appraiser www.myCNI.com.my www.OOBEY.com
Complaints about Performance Appraisals - Summary ,[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
What is Performance Appraisal used for? Reward? Discipline? Development? Motivation? Promotion? Monitor? www.myCNI.com.my www.OOBEY.com
Performance Management   Performance Appraisal   Performance Development   Performance Measurement   Common terms and definitions  www.myCNI.com.my www.OOBEY.com
What is the OBJECTIVE? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
What is Performance Appraisal used for? Reward? Discipline? Development? Motivation? Promotion? Monitor? www.myCNI.com.my www.OOBEY.com
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
Why BSC? ,[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
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?
Performance Management for Change ,[object Object],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 ,[object Object],[object Object],[object Object],[object Object],RESULTS DRIVEN ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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
MBO Standards www.myCNI.com.my www.OOBEY.com   Useless Poor Average Good Excellent E D C B A
MBO Standards www.myCNI.com.my www.OOBEY.com   Useless Poor Average Good Excellent E D Good C B A
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
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
MBO Target Setting  - Objectives and Measures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
MBO Target Setting  - Objectives and Measures www.myCNI.com.my www.OOBEY.com   ,[object Object],Timeliness ,[object Object],Cost ,[object Object],Quantity ,[object Object],[object Object],Quality
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
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
Competency Target Setting ,[object Object],[object Object],[object Object],[object Object],[object Object],What’s the problem here? www.myCNI.com.my www.OOBEY.com
Competency Target Setting ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
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
4. Designing Incentive Schemes That Encourages Lab Safety www.myCNI.com.my www.OOBEY.com
Incentive Problems ,[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
What to Pay? ,[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Performance and Incentives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
What’s the Difference?  ,[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Compa Ratio Table ,[object Object],[object Object],[object Object],[object Object],[object Object],Grade E2 Min RM2,000 MID RM2,500 Max RM3,000 www.myCNI.com.my www.OOBEY.com
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
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
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
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
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
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
Dangers of Direct Incentives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff www.myCNI.com.my www.OOBEY.com
Possible TEAM-type KPIs and incentives www.myCNI.com.my www.OOBEY.com   ,[object Object],[object Object],Functional ,[object Object],[object Object],Network/ Partnerships ,[object Object],[object Object],Project/ Time-based ,[object Object],[object Object],Process Possible Incentive Type Team Type
Team Incentive Models ,[object Object],Performance Incentive =  Fixed Quantum +  (Balance Sum In Bonus Pool ÷ Headcount) www.myCNI.com.my www.OOBEY.com
Team Incentive Models ,[object Object],Performance Incentive =  Personal Target Achievement  +  (Personal Target Achievement x Team Performance Multiplier) www.myCNI.com.my www.OOBEY.com
Team Incentive Models ,[object Object],Performance Incentive =  Team Ratio x Personal Target Multiplier  www.myCNI.com.my www.OOBEY.com
5. Using The Right Management And Leadership Methods Supervising Lab Personnel In Order To Ensure Lab Security www.myCNI.com.my www.OOBEY.com
Coaching & Counseling www.myCNI.com.my www.OOBEY.com   Month 1 Performance Planning Month 12 Performance Appraisal Month 2-11 ?
Removing Obstacles for Improved Performance Philosophies Corporate  Objective Performance Objectives www.myCNI.com.my www.OOBEY.com   Structure Resources Leadership Person
Situational Management www.myCNI.com.my www.OOBEY.com   Directive Behavior Supportive Behavior Low High High D1 D2 D3 D4 Consulting Participating Delegating Telling
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
Managing People performance: A Summary www.myCNI.com.my www.OOBEY.com
More Problems…. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
The ‘People’ Problem Philosophies Corporate  Objective Performance Objectives www.myCNI.com.my www.OOBEY.com   Structure Resources Leadership Person
Thank You. soft copy of slides:  www.totallyunrelatedrandomanddebatable.blogspot.com

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

  • 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.
  • 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.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 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.
  • 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.
  • 18.
  • 19.
  • 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.
  • 23.
  • 24.
  • 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.
  • 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.
  • 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?&quot; 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.
  • 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.
  • 39.
  • 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.
  • 43.
  • 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.
  • 47.
  • 48.
  • 49.
  • 50.
  • 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.
  • 58. Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff www.myCNI.com.my www.OOBEY.com
  • 59.
  • 60.
  • 61.
  • 62.
  • 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.
  • 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