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People are rewarded, recognised and cared for

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EFQM "3e People are rewarded, recognised and cared for" with aspects of Motivation and Reward System (monetary, non-monetary, team, individual)

EFQM "3e People are rewarded, recognised and cared for" with aspects of Motivation and Reward System (monetary, non-monetary, team, individual)

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  • 1. 3e People are rewarded, http://www.flickr.com/photos/loop_oh/3781496443/ recognised and cared for
  • 2. SUMMARY OF THE LASTSUMMARY OF THE LAST LECTURES – WHAT DID YOU LEARN?YOU LEARN? International Human Resources Management, Dr. Jörg Klukas
  • 3. What we have learnt. • EFQM Model for HR- Departments Sub-Criteria 3c • Target Appraisal Interviews, • Sub-Criteria 3a • HR Planning • HR Marketing, Recruiting, Integration Management by Objectives • Empowerment • Sub-Criteria 3d • I te al Co icatioIntegration • Succession Planning • Employee Survey • Sub-Criteria 3b • Internal Communication • Feedback, 360° Sub Criteria 3b • Strategic Competency Management • Blended Learning S tSystem • Annual Employee Feedback Talks International Human Resources Management, Dr. Jörg Klukas
  • 4. The EFQM excellence modelQ Leadership People Strateg Processes People Results Customer Key Performance 3 P lLeadership Strategy Partnership & Resources Processes Results Society Results Performance Results 3. People a. People plans support the organization’s strategy b. People’s knowledge and capabilities are developed c People are aligned involved and empoweredc. People are aligned, involved and empowered d. People communicate effectively throughout the organization e. People are rewarded, recognised and cared for International Human Resources Management, Dr. Jörg Klukas 4
  • 5. 3E PEOPLE ARE3E PEOPLE ARE REWARDED, RECOGNISED AND CARED FORAND CARED FOR International Human Resources Management, Dr. Jörg Klukas 5
  • 6. The EFQM excellence model – PeopleQ p 3 P l d d i d d d f In practice, excellent organizations Ali ti b fit d l t d d d 3e People are rewarded, recognised and cared for APPROACHES E ( )• Align remuneration, benefits, redeployment, redundancy and other terms of employment with strategy and policies and, to promote and sustain the involvement and empowerment of their people. • Adopt approaches that ensure a responsible work/life balance for their l Work/life balance Empowerment(3c) people. • Ensure and embrace the diversity of their people. • Ensure a safe and healthy working environment for their people. Motivation • Encourage their people to participate in activities that contribute to wider society. • Promote a culture of mutual support, recognition and care between individuals and between teams Total Rewards Intercultural Management(L) International Human Resources Management, Dr. Jörg Klukas 6 individuals and between teams. Total Rewards
  • 7. MOTIVATIONMOTIVATION International Human Resources Management, Dr. Jörg Klukas 7
  • 8. Sucess Factors – Satisfaction & Motivation The Success of Company Employee’s emotional connection Employee’s motivation Overall image Overall satisfaction Intrinsic extrinsic Train for skills Hire for attitudes International Human Resources Management, Dr. Jörg Klukas 8Source: forum! Modell zum Einfluss der Motivation auf den Unternehmenserfolg
  • 9. Intrinsic&Extrinsic Motivation Motivation of Employee Extrinsic motivation Intrinsic motivation Supervisor Satisfaction of the life Communication Ability of enthusiasm Team Perspective Discipline International Human Resources Management, Dr. Jörg Klukas Identification 9
  • 10. German Benchmark for Motivation/Statisfaction Very Satisfied and motivated overaverage Very Satisfied and motivated Average satisfied and motivated index Average Satisfied but unmotivated otivationi Unsatisfied and unmotivated Very unsatisfied and unmotivated rageM Very unsatisfied and unmotivated Belowave Source: Exba Mitarbeiter 2007 Below average Overall satisfaction over average International Human Resources Management, Dr. Jörg Klukas 10
  • 11. Motivated Employees Connect with Their Customer Employee motivation index 86 points nSalesReturnon Employee i i R motivation index 46 points International Human Resources Management, Dr. Jörg Klukas Source:Kundenstudie Handelsfilialen;Mitarbeitemotivation sindex auf einer Skale vom 0-keine Motivation bis 100- maximale Motivation Emotional customers connection 11
  • 12. How can employees contribute optimally to the successp y The Success of Company Emotional customer retention Customer-oriented Employees’ motivation Extrinsic motivation Intrinsic motivation International Human Resources Management, Dr. Jörg Klukas Train for skills Hire for attitudes Source: forum! Modell zum Einfluss der Motivation auf den Unternehmenserfolg 12
  • 13. Motivation lead to Customer-oriented To what extent do you agree the following statements of your activities? I feel that personal responsibility to the customer’s satisfaction I understand that the Salary come at last from customer It is easy for me to put myself in the position of customer I feel comfortable contact with customer High motivated International Human Resources Management, Dr. Jörg Klukas Source:Kundenstudie Handelsfilialen;Mitarbeitemotivationsindex auf einer Skale vom 0-keine Motivation bis 100- maximale Motivation High motivated Low motivated 13
  • 14. Herzberg’s Two-Factor Theoryg y Source: flatworldknowledge 2010 International Human Resources Management, Dr. Jörg Klukas 14
  • 15. Expectancy Theory and Equity Theory - Employeesp y Expectancy Theory – the process people use to Equity Theory – individual’s perception ofthe process people use to evaluate the likelihood their effort will yield the d i d t d h individual s perception of fair and equitable treatment. desired outcome and how much they want the outcome. International Human Resources Management, Dr. Jörg Klukas 15
  • 16. Goal-Setting Theory - Leadersg y • Goal: target, objective, or result that someone triesresult that someone tries to accomplish. • Goal-setting theory -g y people will be motivated to the extent to which they accept specificthey accept specific, challenging goals and receive feedback that i di t th iindicates their progress toward goal achievement. International Human Resources Management, Dr. Jörg Klukas 16
  • 17. Motivation as Business Driver Market / Customer (outisde) Profitability Growth C t New Products & Innovation Organization (inside) Q ti Service Quality Customer Satisfaction Loyalty Leadership Strategy Internal Processes Questions of employee survey Attitude of employees Behavior of employees Customer Relation Career opportunity Growth driver employees Performance/ Feedback Teamwork Re at o Empowerment direct leadership Culture p International Human Resources Management, Dr. Jörg Klukas 17
  • 18. Influences of Motivation Increase/growth F db k Clear Expectation, Responsi- bilities Values Commitment learn Feedback Consequences Requirements of Motivation Targets and Tasks Confidence encourage Commitment Engagement TrustStrategy f Performance Tech-orga. work environment Skills Recognition, Promotion Material Conse- quences Performance (Results) See and understand results fair? Satisfaction with Results and System Skills, Knowledge improve learn International Human Resources Management, Dr. Jörg Klukas 18
  • 19. Emotions drive Motivation • you cannot motivate somebody • motivation can only be done by oneelf• motivation can only be done by oneelf • but, you can cause emotions and on that basis motivations processes are initializedp • employee motivates himself on the basis of id d i b h l dprovided emotions by the leader International Human Resources Management, Dr. Jörg Klukas 19
  • 20. Leading by Emotionsg y • understand inter-relational emotions processes as drivers for internal motivations processesdrivers for internal motivations processes • Leading by Command&Control • Leading by Objectives L di b Vi i emotional • Leading by Vision level International Human Resources Management, Dr. Jörg Klukas 20
  • 21. Remember: Communication drives Emotions Avoid Negative Emotions Achieve Positive EmotionsAvoid Negative Emotions Achieve Positive Emotions Power C t l Lack of power Los of control Control Influence Freedom Self-determination Contempt Recognition Appreciation Depreciation Ignorance Appreciation Status Image International Human Resources Management, Dr. Jörg Klukas 21
  • 22. REWARDS MANAGEMENTREWARDS MANAGEMENT International Human Resources Management, Dr. Jörg Klukas 22
  • 23. Shift in Jobs & Reward Systemsy • 1960s & ‘70s • manual workersmanual workers, • piece-rates/wage drift, • measured day work, • incomes policies • 1980 & ‘90s • service/knowledge workers,service/knowledge workers, • Performance Related Pay, • shares 2000• 2000s • Reward management, • Performance Related Pay,y • “Total Reward” 23 International Human Resources Management, Dr. Jörg Klukas
  • 24. Objectives of Reward Managementj g • Support the organisation’s strategy • Recruit & retain• Recruit & retain • Motivate employees • Internal & external equityInternal & external equity • Strengthen psychological contract • Financially sustainable • Comply with legislation • Efficiently administered 24 International Human Resources Management, Dr. Jörg Klukas
  • 25. Basic Types of Reward Source: http://www.wishfulthinking.co.uk/2008/12/09/balance/ 25 International Human Resources Management, Dr. Jörg Klukas
  • 26. Reward from HR Excellence Prospectp BestPersAward • how many of your employees have target agreements with financial consequencesconsequences • The results of the performance evaluation are used what for: basic salary, variable compensation • Do you have a Cafeteria-System (Employees choose salaryDo you have a Cafeteria System (Employees choose salary components) • Which components does your reward system have? retirement provisions, performance fee, company car, cell phone, employee discount, accident insurance • … 26 International Human Resources Management, Dr. Jörg Klukas
  • 27. Reward from HR Excellence Prospectp People Capability Maturity Model (PCMM) Source: Carnegie Mellon University 2010 27 International Human Resources Management, Dr. Jörg Klukas
  • 28. Reward from HR Excellence Prospectp People Capability Maturity Model (PCMM) 28 International Human Resources Management, Dr. Jörg Klukas
  • 29. TOTAL REWARDTOTAL REWARD International Human Resources Management, Dr. Jörg Klukas 29
  • 30. Total Reward - Results • Differentiation from competitors regarding reward system • Support of culture of excellence and team building, which are fundamental for the business • Long term connection of important competences through bonus systems • Increasing company performance 30 International Human Resources Management, Dr. Jörg Klukas
  • 31. Total Reward – Stakeholders Integrating important Stakeholders: • support of commitment to performance and engagement of internal and external employees as stakeholders • support of the management as leading authority • the organization regarding economic efficiency • positioning on the job market as the Employer of Choice • negotiation with labor unions as a representative of the employee • compliance with regulations and laws organization job market internal/external employee legislator/lawmaker labor union leadership 31 International Human Resources Management, Dr. Jörg Klukas
  • 32. Total Reward – Processes Based on Processes: • Process: Strategy and Planning • focusing of compensation tools on Human Capital Market • Analyzing market needs and expectations of employeers, applicants • Strategy as Attractive Employer and to bind people to your organizationSt ategy as tt act ve p oye a d to b d peop e to you o ga at o • Process: Operational leadership • Use of Reward Approach for commitment to performance and engagement of employees • Day to Day Leadership uses tools of rewards• Day to Day Leadership uses tools of rewards • Process: Ensure value and learning • Use learning as a chance of non-financial compensation • Set up structured feedback possibilities for individuals and teams after projects, services, or work-day • Process: Human Resources Management • managing of reward tools and their processes • Monitor effectiveness of the variaous toolsMonitor effectiveness of the variaous tools • Manage and moderate fairness throughout the organization 32 International Human Resources Management, Dr. Jörg Klukas
  • 33. Total Reward – Elements Indi idual monetarTeam oriented monetary Individual monetary performance reward are individually set up Team-oriented monetary reward are valid for entire groups tariff non-tarifftariff non-tariff individualteam individualteam Team-oriented and individual non- t i ti Company-wide Social-related Person-related Incentives monetary incentives non-monetary 33International Human Resources Management, Dr. Jörg Klukas
  • 34. Total Reward – Example monetary&inidividualy Individual monetary performance reward are individually set up C ti f Increases Premiums for extraordinary achieve- ments beyond wage Compensation for “Available for Service”, “Night shifts”, “Weekend work” (Rufbereitschaft) Annual Salary Check (Gehalts- überprüfungsprozess) Variable Salary acc. to reached targets (Variabler Anteil entsprechend Zielerreichung) Increases acc. to risk responsibility ments beyond wage agreements M k i d b On demand salary up/downgrade by peer (Variabler Anteil entsprechend Zielerreichung) Market-oriented base pay acc. to wage agreement (Grundgehalt nach Tarif) y p assessment (Höher/ Herab- gruppierung) tariff non-tariff 34International Human Resources Management, Dr. Jörg Klukas
  • 35. Total Reward – Example monetary&teamy Team-oriented monetary performance reward are valid for entire groups  Business car and business telephone for private use  Top Team of the Month for good performance in projects and services  Deutsche Telekom discount for devices and contracts  Business travel compensation beyond legal regulations  Continued pay for illness beyond legal regulations  Insurance for accidents for invalidity and death  Deferred Compensation as conversion of cash salary in pension with high interests  Stock Options (Jubiläumsaktien)  Pension and Fond System (Altersvorsorge) tariff non-tariff 35International Human Resources Management, Dr. Jörg Klukas
  • 36. Total Reward – Example non-monetaryy Team-oriented and individual non-monetary performance rewards  Transparent career paths for all positions at MMS  Flexible working time based on trust  Lived team-spirit as company culture  Management by objectives with team targets (Führen  Fastidious tasks  Transparent individual career path  Further education by  Individual workplace set up by choosing computer, laptop, mobile, plants, paintings, etc. (A b i l l ) g ( durch Ziele)  Open feedback culture by employee survey, project feedbacks, annual employee lk j i y training plan acc. to Blended Learning System and individual education contracts (e.g. for diploma, MBA PhD) C hi(Arbeitsplatzgestaltung)  Special leaves (Sonderurlaub)  Coffee/tea kitchen, Work- out room, massage service, talk, project reviews  Informal communication through all hierarchy levels by email, telephone, news articles, workshops, etc. MBA, PhD), Coaching  Sabbatical, e.g. education time out  Flexible working hours by part time contracts andout room, massage service, vaccination, parking spaces, bicycle room articles, workshops, etc.  Offsite meetings, works outings, celebrations part time contracts and alternating telecommuting  Individual feedback talks as annual employee and target agreement talks Company-wide Social-related Person-related Incentives 36International Human Resources Management, Dr. Jörg Klukas
  • 37. Total Reward - Measuring Success (Controlling)( g) • differentiation from competitors regarding compensation system • Applicants per job • fluctuation • support of performance culture and team building, that are basics in our business • questions in the employee survey about team working • Evaluation of team work through customer survey • Number of TOP Team of the month • long term engagement of important competences through appeal systems • Number of certificates • increase of company performance • value-added per person • average target fulfillment 37 International Human Resources Management, Dr. Jörg Klukas
  • 38. Reward – Internal Communication Example „ It does’t always have to be money“ • Excellent! Team of the month. • Negotiated! Use the discounts of the for devices and contracts. Paid! • Market oriented basic salary plus variable compensation according to p „ y y for devices and contracts. • Awesome! Expenses for business trips beyond regulations • Cured! Continued payment for illness beyond regulations variable compensation according to reached targets plus compensation for on- call duty plus bonus payments • Tools: Annual salary check, Peer Assessments More money for me More money for the team team-oriented financial individual financial Going strong! Support team spirit through joint activities Di id d! L di th h l F Promoted! Transparent career options. R l i h d! Kit h fit Motivated! Fascinating and challenging tasks F l t d! I di id lDivided! Leading through goals: From BSC to unit-BSC until individual goals. Spoken! Open communication culture. Tools: Target conversations, Meetings, company‘s day out Replenished! Kitchens fitness room massages Worked! Flexible working time. Part time and remote work! Formulated! Individual career, transparent path. Educated! Further education options (Blended Learning System) and individual education contracts (for promotion, MBA), Coaching. company-wide fi i l social fi i l individual fi i l Meetings, company s day out Celebrate in teamAdvantages for everyone (for promotion, MBA), Coaching. Agreed! Employee feedback talks and appraisal interviews non financial non-financial non-financialCelebrate in teamAdvantages for everyone International Human Resources Management, Dr. Jörg Klukas 38
  • 39. Contact me! Dr. Jörg Klukas • XING: https://www xing com/profile/Joerg KlukasXING: https://www.xing.com/profile/Joerg_Klukas • Facebook: http://www.facebook.com/home.php?#!/joerg.klukas • Slideshare: http://www.slideshare.net/pludoni • Twitter: http://twitter com/pludoniTwitter: http://twitter.com/pludoni • Email: joerg.klukas@pludoni.de International Human Resources Management, Dr. Jörg Klukas 39