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  • 1. PERFORMANCE MANAGEMENT HOW TO MANAGE & COMPENSATE PEOPLE TO MEET WORLD COMPETITION BY JOSEPH. H. BOYETT & HENRY. P. CONN CHAPTER CONTENTS 1 THE BASIS FOR MAXIMUM PERFORMANCE MANAGEMENT II HOW TO DETERMINE IF MAXIMUM PERFORMANCE MANAGEMENT IS RIGHT FOR YOUR ORGANIZATION III HOW TO DEFINE / COMMUNICATE VALUES / BUSINESS STRATEGIES IV HOW TO REORGANIZE FOR PERFORMANCE V HOW TO DEVELOP PERFORMANCE MEASURES VI HOW TO DEVELOP AN EFFECTIVE MIS VII HOW TO SET PERFORMANCE GOALS & OBJECTIVES VIII THE IMPACT OF CONSEQUENCES ON EMPLOYEE BEHAVIOR IX HOW TOUSE POSITIVE CONSEQUENCES TO ENCOURAGE PERFORMANCE X PAY FOR PERFORMANCE XI GAINSHARING: HOW TO INCREASE TEAM PERFORMANCE XII PAY FOR KNOWLEDGE: HOW TO INCREASE EMPLOYEE
  • 2. FLEXIBILITY XIII HOW TO DESIGN / INSTALL AN EMPLOYEE INVOLVEMENT SYSTEM XIV BEYOND MPM XV CAREER MANAGEMENT THE BASIS FOR MAXIMUM PERFORMANCE MANAGEMENT INTRODUCTION: - • TODAY BUSINESS IS BECOMING COMPETITIVE • SUCCESS OF BUSINESS DEPENDS UPON ITS PERFORMANCE • PERFORMANCE OF BUSINESS HAS TO BE EXCELLENT, WHICH DEPENDS UPON ITS PEOPLE • SUCCESS OF BUSINESS DEPENDS UPON THE PERFORMANCE OF ITS PEOPLE BUSINESS BEFORE GLOBALIZATION: • PEOPLE TREATED AS COMMODITIES • CONTROL PROBLEMATIC BEHAVIOR • COMMUNICATION ONE WAY • INVOLVEMENT ONLY AT PHYSICAL • COMPENSATION BASED ON SENIORITY BUSINESS AFTER GLOBALIZATION: • PEOPLE TREATED AS PARTNERS • POSITIVE BEHAVIOR REWARDED • COMMUNICATION TWO WAY • INVOLVEMENT AT PHYSICAL & MENTAL LEVEL • COMPENSATION BASED ON PERFORMANCE TYPES OF PERFORMERS: • EXCELLENT • POOR
  • 3. • AVERAGE EXCELLENT PERFORMER: • FEW IN NUMBER • PRODUCE HIGH VOLUME & QUALITY WORK IN TIME & AT ACCEPTABLE PRICE • EASY TO MANAGE • MINIMUM SUPERVISION & DIRECTION • GENUINELY ENJOY THEIR WORK AVERAGE PERFORMER: • PERFORMANCE VARIES. SOMETIMES EXCELLENT, SOMETIMES POOR • PERFORMANCE BELOW CAPACITY • CONSIDERABLE ROOM FOR IMPROVEMENT POOR PERFORMER: • OPPOSITE OF EXCELLENT PERFORMERS ISSUE BEFORE MANAGEMENT:- • RETAIN EXCELLENT PERFORMER • DEAL WITH POOR PERFORMERS • IMPROVE PERFORMANCE OF AVERAGE PERFORMERS CHARACTERISTICS OF EXCELLENT PERFORMERS • THEY HAVE THE FOLLOWING QUALITIES: o KNOWLEDGE & SKILL o INTERNAL MOTIVES o ABILITIES • KNOWLEDGE & SKILLS: o CONSTANTLY UPGRADE THEIR K / S o KNOW WHAT NEEDS TO BE DONE & HOW IT HAS TO BE DONE • INTERNAL MOTIVE: o WORK PROVIDES PERSONAL SATISFACTION o WORK HAS MEANING • ABILITIES o IT MATCHES WITH THAT OF THE JOB REQUIREMENT CAN EXCELLENCE BE CREATED? • YES • FOLLOWING ARE THE WAYS:
  • 4. o MATCHING OF THE JOB o TRAINING o RECRUITMENT o MANAGING ENVIRONMENT MATCHING OF JOB • PROFILING OF THE PEOPLE WITH THAT OF THE JOB CAN BE DONE • LIMITATION o BUT JOBS UNDERGOES CHANGE, BECAUSE BUSINESS IS DYNAMIC o TODAY’S MATCH WILL BE A MISMATCH TOMORROW TRAINING: • WE CAN TRAIN EMPLOYEES TO BE EXCELLENT PERFORMER • TRAINING WILL BE EFFECTIVE ONLY IF: o THERE IS FOLLOW UP o IF APPLIED ON THE JOB • LIMITATION: o LEARNING VARIES FROM PEOPLE TO PEOPLE RECRUITMENT • ALL THE EXCELLENT PERFORMERS NEED NOT HAVE APPLIED • SELECTION FROM POOL OF CANDIDATES WHO HAVE BEEN SHORT-LISTED • WE SELECT BEST FROM THE AVAILABLE LOT. • IT IS A COMPROMISING SITUATION CONTROLLING ENVIRONMENT: • EXCELLENCE IS A FUNCTION OF K / S X M X A • THESE ARE THE QUALITIES OF AN EXCELLENT PERFORMERS • TO COMPENSATE THE THREE, WE ADDRESS THE ENVIRONMENT IN WHICH THE EMPLOYEE WORKS • THE FOLLOWING ARE THE THREE ENVIRONMENTAL FACTORS WHICH HAS TO BE ADDRESSED: o INFORMATION o CONSEQUENCES o INVOLVEMENT • INFORMATION:
  • 5. o KNOWLEDGE IS INFORMATION o SHARE  VALUES / STRATEGIES  GOALS  ACTIVITIES TO BE PERFORMED TO ACCOMPLISH THE GOALS  PROVIDE FEEDBACK o IT COMPENSATES FOR THE WEAKNESS OF K/S • CONSEQUENCES: o LINK PERFORMANCE TO REWARD & PUNISHMENT o LINK PAY TO PERFORMANCE o COMPENSATES FOR THE WEAKNESS OF INTERNAL MOTIVE • INVOLVEMENT o MAKE IT MANDATORY o TRAIN FOR SELF-MANAGED TEAM o PROVIDE CROSS-FUNCTION TRAINING o COMPENSATES FOR ABILITY CONCLUSION: • ABOVE THREE FACTORS HAVE TO BE ADDRESSED SIMULTANEOUSLY • THE FACTORS ARE INTERDEPENDENT ON EACH OTHER • THEY ARE INEFFECTIVE IF IT OPERATES ALL BY ITSELF HOW TO DETERMINE IF MPM IS RIGHT FOR YOUR ORGANIZATION? • ASK THE FOLLOWING QUESTIONS TO THE CEO OF THE ORGANIZATION: o DOES HE ACCEPT THE RESPONSIBILITY FOR HIS EMPLOYEES o DOES HE HAVE CONFIDENCE IN HIS EMPLOYEES o IS HE LOOKING OUT FOR IMMEDIATE SOLUTION OR IS HE LOOKING OUT FOR A LONG TERM STRATEGY o ARE EMPLOYEES RESPONSIBLE FOR THE PERFORMANCE OF THE ORGANIZATION o DOES HE HAVE GENUINE NEED FOR IMPROVEMENT
  • 6. o IS HE WILLING TO ACT AS A COACH, A FACILITATOR FOR HIS EMPLOYEES CONCLUSIONS: • TODAY’S GENERATION OF EMPLOYEES ARE QUALIFIED • THEY ASK LOT OF QUESTIONS • THEY WANT TO BE HEARD • THEY ARE SELF-INTERESTED • DEAL YOU NEED CREATIVE WAYS IN MANAGING YOUR EMPLOYEES INFORMATION: HOW TO DEFINE & COMMUNICATE VALUES & BUSINESS STRATEGIES TO EMPLOYEES INTRODUCTION: • ALL EMPLOYEES ASPIRE TO EXCEL. THEY NEED DIRECTION • DEFINE & COMMUNICATE ORGANIZATION’S VALUES & STRATEGIES TO YOUR EMPLOYEES • SENIORS OF THE ORGANIZATION ARE RESPONSIBLE FOR SETTING THE VALUES
  • 7. WHAT ARE VALUES? • NORMATIVE PRESCRIPTION OF WHAT CONSTITUTES AN ACCEPTABLE BEHAVIOR IN AN ORGANIZATION • FEW IN NUMBERS • ONCE SET, IT RARELY CHANGES • CHANGE IN VALUES CAUSES GREAT TRAUMA IN THE ORGANIZATION • ESTABLISHES FUNDAMENTAL CHARACTER OF THE BUSINESS • PROVIDES PURPOSE FOR DAY TO DAY ACTIVITIES • IT MAKES YOU PROUD TO BE ASSOCIATED WITH SUCH ORGANIZATION • THE FOLLOWING ARE THE SEVEN DOMINANT VALUES OF EXCELLENT ORGANIZATION: o A BELIEF IN BEING THE BEST o A BELIEF IN THE IMPORTANCE OF THE DETAILS OF EXECUTION o A BELIEF IN THE IMPORTANCE OF PEOPLE BEING INDIVIDUALS o A BELIEF IN SUPERIOR QUALITY & SERVICE o A BELIEF THAT MOST MEMBERS OF THE ORGANIZATION ARE WILLING TO EXPERIMENT. SUCH ORGANIZATION SUPPORTS FAILURE FOR THE FIRST TIME o A BELIEF IN THE IMPORTANCE OF INFORMALITY TO ENHANCE COMMUNICATION o EXPLICIT BELIEF IN & RECOGNITION OF THE IMPORTANCE OF ECONOMIC GROWTH & PROFITS HOW TO DETERMINE YOUR ORGANIZATION’S VALUES: INTRODUCTION: • THE FOLLOWING EXERCISE HELPS TO DETERMINE THE VALUES:
  • 8. • VALUE EXERCISE 1: BEING THE BEST • TAKE A BLANK SHEET • DIVIDE THE SHEET INTO TWO COLUMNS • ON THE LHS WRITE “TO ME BEING THE BEST MEANS” MEANS ALWAYS DOING THESE THINGS • ON THE RHS WRITE “TO ME BEING THE BEST MEANS NEVER DOING THESE THINGS” • BE SPECIFIC WHEN WRITING THE COLUMNS • ONCE YOU HAVE MADE YOUR LIST, REVIEW WHAT YOU HAVE WRITTEN & DO THE FOLLOWING: o FROM THE “ALWAYS DO” COLUMN FOR EACH ITEM ASK YOURSELF, “ IF IT WAS IMPOSSIBLE FOR US TO DO THIS, WOULD I STILL WANT TO BE IN BUSINESS?” o IF THE ANSWER IS “NO” CIRCLE THIS ITEM AS A POSSIBLE VALUE o FOR THE “NEVER DO” COLUMN FOR EACH ITEM ASK YOURSELF,” IF WE DID THIS, WOULD I FEEL NOT JUST DISAPPOINTED BUT REALLY GUILTY ABOUT HAVING DONE IT?” o IF YOU WOULD FEEL GUILTY, CIRCLE THIS ITEM AS A POSSIBLE VALUE VALUE EXERCISE 2: IMITATING THE BEST • PICK AN ORGANIZATION YOU HAVE WORKED FOR IN THE PAST. • WHAT WAS IT ABOUT THIS ORGANIZATION THAT YOU MOST ADMIRED? • BE SPECIFIC WHILE PREPARING THE LIST • WHEN YOU HAVE FINISHED YOUR LIST, ASK YOURSELF “WHICH OF THESE QUALITIES SHOULD WE EMULATE” VALUE EXERCISE 3: AVOIDING THE WORST • REVERSE EXERCISE 2
  • 9. VALUE EXERCISE 4: SOURCE OF PRIDE METHOD 1: • MOST OF US LOVE TALKING ABOUT WHAT WE DO • IF YOU ARE ASKED o WHAT DO ENJOY MOST ABOUT YOUR JOB o WHAT MAKES YOUR JOB SO ATTRACTIVE • JOT DOWN WHAT THE PERSON SAYS METHOD 2: • YOU ARE A SUCCESSFUL EXECUTIVE IN YOUR ORGANIZATION • YOU HAVE BEEN ASKED TO SPEAK IN YOUR SCHOOL ABOUT YOUR WORK, YOUR PROFESSION OR YOUR ORGANIZATION • WHAT KEY POINTS WOULD YOU MAKE IN SUCH A SPEECH • REVIEW YOUR NOTES. ASK YOURSELF WHICH OF THESE POINTS ARE ENDURING REALITY CHECKING • ASK YOURSELF THE FOLLOWING QUESTIONS TO DO REALITY CHECKING OF YOUR VALUES: o HOW CONSISTENT IS THIS VALUE WITH WHAT IS OR HAS BEEN REWARDED IN THIS ORGANIZATION? o HOW COMMITTED AM I PERSONALLY TO THIS VALUE? IS THIS VALUE SOMETHING I AM REALLY PREPARED TO LIVE BY? • YOUR ANSWERS TO THESE QUESTIONS ARE A CHECK ON THE REASONABLENESS OF THESE VALUES FOR THE ORGANIZATION YOU ARE PART OF & FOR YOURSELF AT THIS TIME • IF YOU ARE NOT COMMITTED, YOUR BEHAVIOR WILL NOT BE CONSISTENT WITH THESE VALUES • ASK YOURSELF, “IF IT WERE IMPOSSIBLE TO OPERATE THE BUSINESS CONSISTENT WITH THESE VALUES FOR WHATEVER REASON, WOULD I BE PREPARED TO TERMINATE MY ASSOCIATION WITH THE ORGANIZATION & ACCEPT THE FINANCIAL, SOCIAL, & PERSONAL SACRIFICE WHICH FOLLOWS • IF YOUR ANSWER IS “NO” THEN YOU ARE NOT SUFFICIENTLY COMMITTED TO THIS SET OF VALUES
  • 10. HOW TO COMMUNICATE VALUES TO EMPLOYEES? • WRITTEN COMMUNICATION • FORMAL VERBAL COMMUNICATION • INFORMAL VERBAL COMMUNICATION & DEMONSTRATION HOW TO DEVELOP YOUR BUSINESS STRATEGY INTRODUCTION: • BUSINESSES ARE RUN ON VALUES. • ALL O HAVE OBJECTIVES. • BUT IN A COMPETITIVE ENVIRONMENT, IF AN O HAS TO GROW, THEN IT SHOULD HAVE CERTAIN OBJECTIVES IF ACHIEVED WILL GIVE AN ADVANTAGE TO IT, OVER ITS COMPETITORS ONE NEEDS STRATEGY • TO ACHIEVE THESE OBJECTIVES ONE NEEDS TO PLAN STRATEGICALLY. • STRATEGIES HAVE TO BE DEVELOPED. IT CONSISTS OF THE FOLLOWING STEPS: o DRIVING FORCE  WHAT ARE WE GOOD AT  STRATEGIES ARE BASED ON WHAT WE ARE GOOD AT  IT ANSWERS THE QUESTION “WHAT IS OUR BUSINESS”  WE COULD BE GOOD AT THE FOLLOWING THINGS: • PRODUCTS OFFERED TO CUSTOMERS • SERVING CUSTOMERS • TECHNOLOGY • METHOD OF SALE • NATURAL RESOURCES o KNOWING OUR COMPETITORS STRENGTH & WEAKNESS o KNOW THE FOLLOWING AREAS OF COMPETITION  CAPACITY: • VOLUME OR RANGE OF PRODUCTS  RATE: • EFFICIENCY  ACCURACY / FITNESS FOR USE: • PERCEIVED QUALITY  UNIQUENESS / NOVELTY OF PRODUCT: • UNIQUE CHARACTERISTICS OF THE PRODUCT
  • 11.  TIMELINESS: • MEETING PROMISES OF DELIVERY  AVAILABILITY: • PRODUCT AVAILABLE ON DEMAND  COST: • LESS THAN THAT OF COMPETITOR OR ESTIMATED COST  BENEFIT / VALUE: • HIGHER PERCEIVED VALUE IRRESPECTIVE OF RELATIVE COST.  CUSTOMER SERVICE: • CUSTOMER’S PERCEPTION OF CARE, ATTENTION, RESPONSIVENESS, FRIENDLINESS, CONCERN WITH PRODUCTS / SERVICE OFFERED o KNOW YOUR PEOPLE’S CAPABILITY. CAPABILITIES DETERMINE HOW ONE OUTPERFORMS THE COMPETITOR • THE CEO & HIS MANAGEMENT TEAM DETERMINE STRATEGIES. THE TEAM SHOULD NOT BE MORE THAN 5 MEMBERS COMING FROM VARIOUS FUNCTIONS • VALUES INFLUENCES STRATEGIES. HOW TO COMMUNICATE YOUR BUSINESS STRATEGY TO EMPLOYEES • COMMUNICATE THE FOLLOWING TO YOUR EMPLOYEES: o WHAT IS OUR STRENGTH [DRIVING FORCE] o WHAT IS OUR COMPETITOR’S STRENGTH o IN WHICH AREA OF COMPETITION WE ARE GOOD AT o WHAT IS THE RANGE OF OUR CAPABILITY • THE COMMUNICATION CAN THROUGH EITHER IN WRITING OR ORAL
  • 12. HOW TO REORGANIZE FOR PERFORMANCE INTRODUCTION: • INSPITE OF COMMUNICATING THE VALUES / STRATEGIES TO THE EMPLOYEES, YET THERE IS GAP IN OUR PERFORMANCE • WHY IS THIS SO? • BECAUSE VALUES / STRATEGIES DO NOT TELL US HOW TO GO ABOUT IN OUR PERFORMANCE • VALUES / STRATEGIES SHOULD SPECIFY WHAT TYPE BEHAVIOR THE EMPLOYEE SHOULD DISPLAY. • BY BEHAVIOR WE MEAN NOT ONLY INDIVIDUAL BEHAVIOR, BUT ALSO BEHAVIOR THAT RESULTS IN ACHIEVING THE GOALS OF THE ORGANIZATION CHARACTERISTICS OF THE TERM BEHAVIOUR: • IT IS WHAT PEOPLE SAY OR DO • IT CAN BE OBSERVED [HEARD / SEEN] WHILE IT IS OCCURRING • IT IS A SET OF HABITS.
  • 13. • IT CAN BE CHANGED. HENCE THE FOCUS ON BEHAVIOUR. • FOR EXAMPLE: o EMPLOYEES CANNOT DIRECTLY MAKE THE COMPANY THE “HIGHEST QUALITY PROVIDER” WHAT EMPLOYEES CAN DO, HOWEVER IS CHECK THEIR OWN WORK TO ENSURE THAT IT IS IN COMPLIANCE WITH QUALITY STANDARDS. MAKING SUCH QUALITY CHECKS & PERHAPS KEEPING A QUALITY CONTROL GRAPH IS A BEHAVIOR, WHICH CAN OBSERVED WHILE IT IS OCCURRING & IT IS CONTROLLABLE BY THE EMPLOYEE o TO OPERATE A BUSINESS IN ACCORDANCE WITH BASIC VALUES & TO ACHIEVE OBJECTIVES, YOU HAVE TO ENSURE THAT EMPLOYEES CHANGE THEIR BEHAVIOR SO THAT IT IS CONSISTENT WITH COMPANY’S VALUES / STRATEGIES o SINCE THE ULTIMATE GOAL OF THE O SHOULD BE TO ACHIEVE ITS STRATEGIC OBJECTIVES WE CANNOT IGNORE THE GAP BETWEEN STRATEGIES & BEHAVIOURS. THIS IS THE GAP WHICH SHOULD BE BRIDGED
  • 14. THE IMPORTANCE OF MISSION & ACCOMPLISHMENTS MISSION: • STRATEGIC OBJECTIVES ARE TOO BROAD IN NATURE. IT CONTAINS ONE OR MORE MISSIONS. IT SHOULD BE MADE MORE CONCRETE, & MEANINGFUL WHICH THE EMPLOYEES CAN UNDERSTAND • QUESTIONS A MISSION STATEMENT SHOULD ANSWER: o WHAT IS OUR BUSINESS? o WHO IS THE CUSTOMER? o WHAT DO CUSTOMER’S VALUE? o WHAT SHOULD OUR BUSINESS BE? • MISSION STATEMENT SHOULD o BE REALISTIC o BE SPECIFIC o FIT THE MARKET ENVIRONMENT o BE BASED ON DISTINCTIVE COMPETENCIES o BE MOTIVATING • ACCOMPLISHMENTS: o IT TALKS ABOUT COMPETITIVE REQUIREMENTS TO ACCOMPLISH THE MISSION • BEHAVIOR: o THE KEY CAPABILITIES REQUIRED TO ACHIEVE THESE COMPETITIVE REQUIREMENTS • VALUES • STRATEGIES
  • 15. • MISSION • BEHAVIOR • ACTUALLY THIS SHOULD BE THE TYPE OF O STRUCTURE HOW TO DESIGN A PERFORMANCE ORGANIZATION? • TO DESIGN PERFORMANCE ORGANIZATION, WE START WITH THE RESULTS WE WANT • WE HAVE TWO CHOICES REGARDING O: o ALONG PRODUCT / SERVICE LINES OR o ALONG MARKET / CUSTOMER LINES PRODUCT / SERVICE LINE ORGANIZATION • IF WE ORGANIZE ALONG PRODUCT / SERVICE LINES WE WILL CREATE ORGANIZATIONAL UNITS [DIVISIONS, DEPARTMENTS, SECTIONS, ETC.] WHOSE PRIMARY MISSION WILL BE: o TO PROVIDE IDENTIFIED PRODUCTS / SERVICES TO MEET THE NEEDS OF CERTAIN MARKETS / CUSTOMERS SO THAT EXISTING CUSTOMERS ARE RETAINED, & NEW CUSTOMERS OR THESE PRODUCTS / SERVICES ARE OBTAINED WHILE ACHIEVING OR EXCEEDING PROJECTED LEVELS OF PROFITABILITY • THE CRITICAL ACCOMPLISHMENTS ARE TO ACHIEVE THE COMPETITIVE REQUIREMENTS FOR ITS PARTICULAR PRODUCT / SERVICE LINE & ITS MARKETS / CUSTOMERS • THE CRITICAL BEHAVIORS FOR A PRODUCT / SERVICE LINE COMPONENTS ARE DEMONSTRATED BY KEY CAPABILITIES FOR ACHIEVING THESE COMPETITIVE REQUIREMENTS MARKET / CUSTOMER LINE ORGANIZATION: • IF WE ORGANIZE ALONG MARKET / CUSTOMER LINES, WE WILL CREATE ORGANIZATIONAL UNITS [DIVISIONS, DEPARTMENTS, SECTIONS ETC.] WHOSE PRIMARY MISSION WILL BE:
  • 16. o TO MEET THE NEEDS OF CERTAIN MARKETS / CUSTOMERS BY PROVIDING & DEVELOPING A RANGE OF PRODUCTS / SERVICES THEY DESIRE SO THAT EXISTING CUSTOMERS ARE RETAINED & NEW CUSTOMERS OF THIS TYPE ARE OBTAINED WHILE ACHIEVING OR EXCEEDING PROJECTED LEVELS OF PROFITABILITY o THE CRITICAL ACCOMPLISHMENTS FOR MARKET / CUSTOMER LINE COMPONENT ARE TO ACHIEVE COMPETITIVE REQUIREMENTS FOR THESE PARTICULAR MARKETS / CUSTOMERS & THE PRODUCTS / SERVICES PROVIDED TO THEM CHARACTERISTICS OF PERFORMANCE APPROACH • DEPARTMENTS ACCORDING TO A SUB GROUPING OF PRODUCTS / SERVICE OR MARKET / CUSTOMER • WE THEN CONTINUE TO SUBDIVIDE THE COMPANY TO THE EXTENT POSSIBLE ALONG PRODUCT / SERVICE OR MARKET / CUSTOMER LINES SO THAT EVERY ORGANIZATIONAL COMPONENT IS RESPONSIBLE FOR PROVIDING PRODUCT / SERVICE OR MEETING THE NEEDS OF SPECIFIC MARKET / CUSTOMERS ARGUMENTS AGAINST PERFORMANCE APPROACH: • WHAT ABOUT WORK THAT BY ITS NATURE REQUIRES A FUNCTIONAL APPROACH TO ORGANIZATION? • FOR EXAMPLE: o WHAT ABOUT WORK THAT REQUIRES A FUNCTIONAL APPROACH TO O o WHAT ABOUT THE ECONOMICS OF OPERATION THAT COMES FROM FULL UTILIZATION OF EQUIPMENT & AVOIDANCE OF DUPLICATION WITH FUNCTIONAL APPROACH o WHAT ABOUT REGULATORY OR SECURITY REQUIREMENTS THAT CAN BE MET THROUGH THE CONCENTRATION & CONTROL THAT COMES FROM A FUNCTIONAL STRUCTURE
  • 17. ARGUMENTS IN FAVOUR OF PERFORMANCE APPROACH • REQUIREMENT OF SPECIALIST: o WE NEED SPECIAL CAPABILITIES, NOT SPECIALIST. AND WE NEED THESE CAPABILITIES TO MEET SPECIFIC COMPETITIVE REQUIREMENTS THAT MIGHT CHANGE WHEN OUR STRATEGY CHANGES o TO PROVIDE THIS CAPABILITY WE COULD CHOOSE TO HIRE A SPECIALIST IF THE WORK IS HIGHLY SPECIALIZED & A CHANGE IN STRATEGY COULD MAKE PERFORMANCE OF THE WORK UNNECESSARY THEN WE SHOULD CONTRACT THE WORK WITH AN OUTSIDE SUPPLIER. o IN THE LONG RUN, CONTRACTING OUT WILL BE LESS EXPENSIVE THAN HIRING SPECIALISTS & THE WORK PRODUCT WILL BE MORE OBJECTIVE & POTENTIALLY OF HIGHER QUALITY. TOO OFTEN WE HAVE SEEN HIGHLY SPECIALIZED FUNCTIONS ORIGINALLY CREATED TO MEET A SHORT TERM BUT STRATEGICALLY IMPORTANT, NEED THAT NO LONGER IS REQUIRED. SUCH GROUPS CONTINUE TO PERPETUATE THEIR EXISTENCE BY LOOKING FOR SOMETHING TO DO. o IF SPECIALIST MUST BE HIRED, IDEALLY THEY SHOULD BE HIRED AS PART OF DEPARTMENT STAFF. THEN THE OPPORTUNITY EXISTS TO BROADEN THEIR SPECIALTY SO THAT IT CAN SERVE A NUMBER OF DIFFERENT FUNCTIONS • FUNCTIONAL GROUPING TO ENSURE ECONOMY & FULL UTILIZATION OF EXPENSIVE EQUIPMENT MAKE SENSE o THE PURPOSE OF THE BUSINESS IS TO PRODUCE A PRODUCT, PROVIDE A SERVICE & MEET CUSTOMER’S NEED. THIS HAS TO BE DONE WITH GREATEST ECONOMY & EFFICIENCY POSSIBLE. BUT WHAT DO WE GAIN FROM ECONOMY & EFFICIENCY IF WE FAIL IN THE ULTIMATE PURPOSE. THE CONCENTRATION OF RESOURCES RESULTS IN LONG QUEUES & GROWING BACKLOGS AS WORK PILES UP WAITING TO PASS THROUGH ONE CENTRAL POINT. THUS ALL PROPOSALS FOR CENTRALIZATION SHOULD BE EXAMINED WITH UTMOST CAUTION. • REGULATORY REQUIREMENTS & SECURITY: o IF YOU HAVE TO, YOU HAVE TO. OFTEN WELL- INTENDED REGULATIONS ARE DETRIMENTAL TO
  • 18. PERFORMANCE. . WE CAN ONLY HOPE THAT THE LOSS IN PERFORMANCE IS MORE THAN MADE UP FOR BY THE HIGHER PURPOSES SERVED BY THE REGULATIONS THEMSELVES. NEVER ACCEPT A SINGLE INTERPRETATION OF WHAT THE REQUIREMENTS REALLY ARE. o WHETHER SECURITY IS OBTAINED BY CONCENTRATION OR BY DISTRIBUTION. FOR EXAMPLE A BANK’S CASH BOX IS OPENED WITH TWO KEYS. BOTH KEYS ARE WITH DIFFERENT PEOPLE CONCLUSION: • EVEN IF YOU NEED STAFF FUNCTIONS SUGGEST HAVE THE CONCEPT OF INTERNAL CUSTOMERS. THIS WILL ENABLE US TO HAVE MISSION & ACCOMPLISHMENTS EVEN FOR THESE STAFF FUNCTIONS ACHIEVING “ EMPLOYMENT SECURITY” NOT JOB SECURITY • UNIT EXISTS SOLELY FOR THE STRATEGIC PURPOSE OF ACCOMPLISHING ITS MISSION. • WHAT HAPPENS IF A PARTICULAR PRODUCT / SERVICE OR MARKET / CUSTOMERS SERVED BY A COMPONENT IS NO LONGER REQUIRED. IN SUCH AN EVENT THE FUNCTIONAL UNITS SERVING INTERNAL NEEDS BECOMES OBSOLETE. • IN PERFORMANCE ORGANIZATION, ALL ORGANIZATIONAL UNITS ARE BY DEFINITION IMPERMANENT; IF SO, THEN ALL POSITIONS WITHIN THESE ORGANIZATIONAL UNITS ARE IMPERMANENT. • IN SUCH AN ORGANIZATION THERE IS NO JOB SECURITY PER SE, ONLY EMPLOYMENT SECURITY. THE PERFORMANCE ORGANIZATION MAKES EVERY EFFORT TO GUARANTEE CONTINUED EMPLOYMENT, BUT NOT NECESSARILY IN A SPECIFIC JOB OR JOB SPECIALTY. LONG-TERM EMPLOYMENT REQUIRES THAT THE COMPANY COMMITS ITSELF EMPLOYEE DEVELOPMENT, & THAT EMPLOYEES BE WILLING TO BE FLEXIBLE IN JOB ASSIGNMENTS • IT IS EXACTLY BECAUSE OF THIS IMPERMANENCE THAT THE PERFORMANCE ORGANIZATION DISCOURAGES OVERSPECIALIZATION, BUT ENCOURAGES COOPERATION & TEAMWORK.
  • 19. HOW TO DEVELOP PERFORMANCE MEASURES INTRODUCTION: • FEEDBACK HAS TO BE PROVIDED TO EMPLOYEES ON THEIR PERFORMANCE. OTHERWISE EMPLOYEES WILL NOT KNOW WHETHER THEIR BEHAVIOR IS CONSISTENT WITH THE EXPECTED BEHAVIOR • WHAT GETS MEASURED GETS DONE. IF YOU CAN’T MEASURE, YOU CAN’T MANAGE IT; & YOU WILL ALSO NOT KNOW IF IT NEEDS IMPROVEMENT • MEASURES PROVIDES DIRECTION, & CONFIRMATION GUIDELINES FOR DEVELOPING MEASURES OF PERFORMANCE • GUIDELINE 1: o ALL MEASURES SHOULD BE ACCOMPLISHMENT BASED o KEY ACCOMPLISHMENTS SHOULD FULFILL THE COMPETITIVE REQUIREMENTS FOR THE PRODUCT / SERVICE OFFERED OR MARKET / CUSTOMER SERVED • GUIDELINE 2: o DEVELOP GROUP / TEAM ORIENTED MEASURES • GUIDELINE 3: o WHEN DEVELOPING MEASURES, SEEK A LEVEL OF PRECISION; IF MEASURE IS A SINGLE INDICATOR o OTHERWISE USE A FAMILY OF MEASURES. • GUIDELINE 4: o MEASURES SHOULD BE REVIEWED, & CHANGED IF NECESSARY WHEN STRATEGIES CHANGE CONCLUSION: • THERE ARE POSSIBLE TYPES OF MEASURES THAT CAN BE DEVELOPED: o COUNTS  NUMBER OF TIMES o RATIOS  NUMBER OF TIMES AN ACCOMPLISHMENT IS ACHIEVED, DIVIDED BY NUMBER OF TIMES ACCOMPLISHMENT COULD HAVE BEEN ACHIEVED o PERCENTAGES  THE NUMBER OF TIMES THE ACCOMPLISHMENTS IS ACHIEVED DIVIDED BY
  • 20. THE NUMBER OF TIMES IT COULD HAVE BEEN ACHIEVED OUT OF 100 OPPORTUNITIES o RUPEES  THE RUPEE IMPACT OF ACHIEVING OR FAILING TO ACHIEVE AN ACCOMPLISHMENT HOW TO DEVELOP AN EFFECTIVE MIS GUIDE TO AN EFFECTIVE MI & PERFORMANCE FEEDBACK SYSTEM • THE SCORECARD DATABASE o IT IS BRINGING THE SCORES FOR EACH ORGANIZATIONAL COMPONENT TOGETHER INTO A SINGLE LOCATION o IT ELLS THE NAME OF THE MEASURE & THE SCORE FOR THAT MEASURE • SCORECARDS: o IT IS THE BASIC REPORTS OF CURRENT SCORES ON THE MEASURE OF PERFORMANCE o USED TO PROVIDE FEEDBACK ON PERFORMANCE o IT SHOULD CONTAIN THE FOLLOWING:  LIST OF PERFORMANCE MEASURES WHICH HAS TO BE MONITORED & CONTROLLED  PERIOD OF THE SCORE. VIZ. WEEKLY, MONTHLY, YEARLY  THE GOALS SHOULD BE STATED  IT SHOULD THE TREND IN PERFORMANCE OVER A PERIOD OF TIME • THE SCORECARD EXCEPTION SUMMARY o EACH TIME SCORECARD IS PRODUCED, PREPARE EXCEPTION SUMMARY o IT IS A SEPARATE REPORT FOR EACH ORGANIZATIONAL COMPONENT THAT HIGHLIGHTS POSITIVE & NEGATIVE EXCEPTIONS o THIS HELPS US TO FOCUS ON AREAS OF PERFORMANCE THAT SHOULD BE OF GREATEST CONCERN o POSITIVE EXCEPTIONS SHOULD BE REWARDED / RECOGNIZED o NEGATIVE EXCEPTIONS SIGNALS THE NEED FOR PROBLEM-SOLVING o IT SHOULD ALSO STATE THE NUMBER OF TIMES THE EXCEPTIONS OCCURS • GRAPHS ON PERFORMANCE
  • 21. o PRODUCE GRAPHS ON PERFORMANCE FOR MEASURES YOU ARE TRACKING o IT HAS THE FOLLOWING ADVANTAGES:  EASY TO READ & INTERPRET AT A GLANCE  EASY TO SEE & ANALYZE THE TRENDS  EASY TO COMPARE PERFORMANCE HOW TO SET PERFORMANCE GOALS? THE PURPOSE OF GOALS & THEIR IMPACT ON PERFORMANCE • GOALS ARE IMPORTANT FOR THE FOLLOWING REASONS: o GIVES MEANING TO THE ACTIVITIES ONE IS PERFORMING o SERVES AS BENCHMARKS o SPECIFIC GOALS RESULTS IN HIGHER LEVEL OF PERFORMANCE THAN N GENERAL GOALS o DIFFICULT GOALS RESULTS IN HIGHER PERFORMANCE o PARTICIPATION IN GOAL SETTING INCREASES THE ACCEPTANCE OF DIFFICULT GOALS REQUIREMENT OF MEANINGFUL GOALS: • GOALS SHOULD BE CHALLENGING • IT SHOULD BE PERCEIVED AS ATTAINABLE • MULTIPLE GOALS ESTABLISHES A RANGE OF PERFORMANCE ASSUMPTIONS TO BE MADE WHILE SETTING GOALS: • OBTAIN CONTINUOUS IMPROVEMENT IN LONG RUN • LEVEL OF PERFORMANCE SHOULD BE EQUAL TO OR BETTER THAN THE COMPETITOR IN THE LONG TERM • CURRENT GOAL SHOULD BE BETTER THAN THE PREVIOUS GOAL • THERE SHOULD BE NO DETERIORATION IN PERFORMANCE OVER LONG TERM, NOR ARE CURRENT
  • 22. PERFORMANCE SHOULD BE WORST THAN PREVIOUS ONE • IF BETTER PERFORMANCE ON AN ACTIVITY HELPS US TO BE COMPETITIVE THEN IT IS MORE IMPORTANT TO SET CHALLENGING GOALS FOR THAT ACTIVITY WHY MULTIPLE GOALS ARE NEEDED FOR EACH ACTIVITY: • A SINGLE GOAL FOR EACH ACTIVITY IGNORES RANDOM FLUCTUATIONS IN SCORES. FLUCTUATIONS DOES NOT INDICATE SIGNIFICANT CHANGES IN PERFORMANCE • THE CONCEPT OF MULTIPLE GOALS REQUIRES SETTING THREE LEVELS OF GOALS FOR EACH PERFORMANCE ACTIVITIES: o THE LONG TERM GOAL:  PERIOD IS 1-2 YEARS  THIS LEVEL INDICATES BETTER THAN CURRENT PERFORMANCE  THE MANAGEMENT USUALLY DICTATES IT. CURRENTLY IT MAY NOT BE ATTAINABLE o THE SHORT TERM GOAL:  DESIRED LEVEL OF PERFORMANCE  PERCEIVED AS ATTAINABLE WITH SOME EFFORT WITHIN A PERIOD RANGING FROM 3-6 MONTHS  AT THE END OF THE TERM THE SHORT GOALS ARE REEVALUATED BASED UPON THE PERFORMANCE. THE EXPECTATION IS THAT WHEN SHORT TERM GOAL IS CONSISTENTLY MET, IT WILL BE MOVED CLOSER TO THE LONG TERM GOAL  SHORT TERM GOALS SHOULD CONFIRM TO THE FOLLOWING CRITERIA: • IT MUST BE LESS THAN OR EQUAL TO THE LONG TERM GOAL • IT CANNOT BE BETTER THAN THE BEST PERFORMANCE EVER ACHIEVED • IT IS BETTER THAN THE CURRENT AVERAGE OR TYPICAL PERFORMANCE  USUALLY SHORT TERM GOALS ARE NEGOTIATED o MINIMUM OR STANDARD  IT IS THE CUT OFF POINT FOR SIGNALING THE EXISTENCE OF OR POTENTIAL FOR A PERFORMANCE PROBLEM
  • 23. DURATION IS OF LONGER PERIOD OF TIME. AT  THE END OF THE PERIOD IT IS REVIEWED WITH THAT INTENTION THAT IT WILL BE RAISED.  IT HAS TO CONFIRM TO THE FOLLOWING CRITERIA: • MUST BE LESS THAN OR EQUAL TO CURRENT AVERAGE PERFORMANCE • THEY CANNOT BE WORSE THAN THE WORST PERFORMANCE FOR ANY PREVIOUS PERIOD o THE PURPOSE OF THREE LEVELS OF GOALS IS TO SPECIFY THE ULTIMATE LEVEL OF PERFORMANCE DESIRED BY THE MANAGEMENT & TO DEFINE THE RANGE OF PERFORMANCE MPM • WHAT IS HAPPENING TO TODAY’S BUSINESS? • ON WHAT IS THE SUCCESS OF BUSINESS DEPENDENT UPON? • PERFORMANCE OF THE ORGANIZATION IS DEPENDENT UPON WHAT FACTOR? • IN TODAY’S ENVIRONMENT HOW SHOULD THE EMPLOYEES BE TREATED? • HOW MANY TYPES OF PERFORMERS ARE THERE? • WHAT ARE THE CHARACTERISTICS OF EXCELLENT PERFORMERS? • WHAT ARE THE CHARACTERISTICS OF AVERAGE PERFORMERS?
  • 24. • WHAT ARE THE CHARACTERISTICS OF POOR PERFORMERS? • STATE THE ISSUES BEFORE THE MANAGEMENT WITH RESPECT PERFORMERS? • IN PMS HOW DO YOU CREATE EXCELLENCE? • CAN WE CREATE EXCELLENCE THROUGH MATCHING OF JOBS? • CAN WE CREATE EXCELLENCE THROUGH RECRUITMENT? • CAN WE CREATE EXCELLENCE THROUGH TRAINING? • STATE THE FACTORS, WHICH WE ADDRESS IN WORK ENVIRONMENT? • STATE THE CHARACTERISTICS OF INFORMATION? • STATE THE CHARACTERISTICS OF CONSEQUENCES? • STATE THE CHARACTERISTICS OF INVOLVEMENT? • CAN THESE FACTORS OPERATE INDEPENDENTLY? • WHAT ARE THE QUESTIONS, WHICH SHOULD BE ASKED TO THE CEO OF THE COMPANY BEFORE IMPLEMENTING MPM? • STATE THE CHARACTERISTICS OF TODAY’S GENERATION? • STATE THE CHARACTERISTICS OF VALUES? • STATE THE SEVEN DOMINANT VALUES OF AN EXCELLENT ORGANIZATION? • HOW DO YOU DETERMINE BEING THE BEST AS A VALUE SYSTEM? • HOW DO YOU DETERMINE IMITATING THE BEST AS A VALUE SYSTEM? • HOW DO YOU DETERMINE SOURCE OF PRIDE AS A VALUE SYSTEM?
  • 25. • HOW DO YOU TEST THE REALITY OF VALUES IN ORGANIZATION? • HOW DO YOU COMMUNICATE VALUES TO YOUR EMPLOYEES? • WHAT ARE THE STEPS IN STRATEGY FORMULATION? • WHAT IS DRIVING FORCE? • STATE THE AREAS OF COMPETITION? • WHY IS THERE A GAP IN THE PERFORMANCE OF THE EMPLOYEES; INSPITE COMMUNICATING TO THEM THE VALUES / STRATEGIES? • STATE THE CHARACTERISTICS OF THE TERM BEHAVIOUR? • WHAT IS MISSION? • HOW DO YOU ACCOMPLISH MISSIONS? • WHAT DO WE LOOK CRITICALLY IN THE BEHAVIOUR OF THE EMPLOYEE? • WHAT ARE THE ARGUMENTS AGAINST PM APPROACH? • HOW WILL YOU DEFEND THE SAME? • HOW CAN WE ACHIEVE EMPLOYMENT SECURITY AS AGAINST JOB SECURITY IN PMS? • HOW DO W DEVELOP MEASURES OF PERFORMANCE? • WHAT ARE THE POSSIBLE TYPES OF MEASURES, WHICH CAN BE DEVELOPED? • HOW DO YOU DEVELOP EFFECTIVE MIS & PERFORMANCE FEEDBACK SYSTEM? • STATE THE PURPOSE & THEIR IMPACT ON PERFORMANCE? • STATE THE REQUIREMENTS OF MEANINGFUL GOALS? • STATE THE ASSUMPTIONS TO BE MADE WHILE SETTING GOALS?
  • 26. • WHY SHOULD GOALS HAVE THREE LEVELS OF SETTING?
  • 27. CONSEQUENCES: TYPES OF CONSEQUENCES: • CONSEQUENCES HAS STRONG INFLUENCE ON BEHAVIOUR • IN ORDER TO UNDERSTAND THE INFLUENCE OF CONSEQUENCES ON BEHAVIOUR, IT IS IMPORTANT TO DISTINGUISH BETWEEN TWO TYPES OF BEHAVIOUR: o REFLEX  THE PERSON HAS NO CONTROL OVER IT  IT IS AUTOMATIC o VOLUNTARY  HAS CONTROL OVER IT  IT IS NOT AUTOMATIC  ALL WORK BEHAVIOUR IS VOLUNTARY. IT IS THIS BEHAVIOUR WHICH CAN BE INFLUENCED BY ARRANGING CONSEQUENCES • CONSEQUENCES FOLLOW BEHAVIOUR. IT DETERMINES WHETHER BEHAVIOUR WILL BE REPEATED OR NOT • TWO TYPES OF CONSEQUENCES: o REINFORCEMENT  PROVIDING SOMETHING WHICH THE EMPLOYEE WANTS AFTER THE BEHAVIOUR IS PERFORMED  ALSO CALLED AS POSITIVE CONSEQUENCE  ADVANTAGES: • HAS LONG TERM EFFECT • PRODUCES DESIRABLE SIDE EFFECTS SUCH AS GREATER INVOLVEMENT, & PARTICIPATION, INCREASED JOB- SATISFACTION • INDICATOR TO THE EMPLOYEES WHAT CONSTITUTES A GOOD / DESIRABLE BEHAVIOR o PUNISHMENT  PROVIDING SOMETHING, WHICH THE EMPLOYEE DOES NOT WANT AFTER THE BEHAVIOUR, HAS OCCURRED.  ALSO CALLED AS NEGATIVE CONSEQUENCE
  • 28.  DOES NOT HAVE LONG TERM EFFECT, UNLESS IT IS SEVERE & CONSISTENTLY APPLIED  HAS UNDESIRABLE RESULTS SUCH AS AVOIDANCE, COMPLAINING, RESENTMENT  IS AN INDICATOR WHAT THE EMPLOYEE SHOULD NOT DO, & NOT WHAT THE EMPLOYEE SHOULD DO? IT IS NOT LIKELY TO RESULT IN INCREASE IN DESIRED BEHAVIOUR • CONSEQUENCE IS REINFORCING OR PUNISHING DEPENDS ENTIRELY ON ITS EFFECT ON THE BEHAVIOUR, & NOT WHAT IS INTENDED BY THE MANAGER • IT IS IMPORTANT TO KNOW WHAT MAKES SENSE TO THE EMPLOYEE; I.E. HOW IS CONSEQUENCE PERCEIVED BY THE EMPLOYEE • IF IN THE EMPLOYEE’S VIEW THE CONSEQUENCE SATISFIES A NEED OF THE EMPLOYEE THEN THE CONSEQUENCE IS REINFORCING FOR THAT EMPLOYEE. AS A MANGER WE OFTEN FAIL TO ALTER THE BEHAVIOUR OF THE EMPLOYEE BECAUSE WE ASSUME THEY PERCEIVE CONSEQUENCES THE SAME WAY WE DO. AS A RESULT, WE USE REWARDS THAT ARE NOT REINFORCERS, & WE USE DISCIPLINE THAT IS NOT PUNISHING AT LEAST FROM THE EMPLOYEES VIEWPOINT WHICH IS AFTER ALL THE ONLY VIEW POINT WHICH MATTERS HOW TO DETERMINE WHAT THE EMPLOYEE WANTS: • ALL EMPLOYEES HAVE NEEDS, WHICH THEY TRY TO SATISFY AT THEIR WORKPLACE. THE NEEDS WHICH THEY ATTEMPT TO MEET IN WORKPLACE: o NEED FOR PERSONAL & FINANCIAL SECURITY o NEED TO BE ACCEPTED AS A PART OF THE WORKGROUP o A NEED FOR A SENSE OF ACCOMPLISHMENT OR ACHIEVEMENT • THE POWER OF ANY GIVEN CONSEQUENCE TO INFLUENCE AN EMPLOYEE’S BEHAVIOUR IS DEPENDENT UPON NUMBER OF FACTORS SUCH AS: o THE EMPLOYEE MUST A RELATIONSHIP BETWEEN THE BEHAVIOUR & THE CONSEQUENCE o THE CONSEQUENCE SHOULD SATISFY A NEED WHICH THE EMPLOYEE HAS
  • 29. o THE NEED THAT WILL BE SATISFIED BY THE CONSEQUENCE MUST BE MORE IMPORTANT THAN A COMPETING NEED AT THE TIME OF THE BEHAVIOUR o THE EFFORT REQUIRED TO PERFORM THE DESIRED BEHAVIOUR MUST BE PERCEIVED BY THE EMPLOYEE AS LESS THAN THE EFFORT REQUIRED TO PERFORM SOME OTHER BEHAVIOUR THAT WOULD LEAD TO THE SAME CONSEQUENCE o THE EFFORT REQUIRED FROM THE EMPLOYEE TO PERFORM THE DESIRED BEHAVIOUR MUST BE PERCEIVED AS LESS THAN THE EFFORT REQUIRED FOR PERFORMING DIFFERENT BEHAVIOURS THAT WOULD LEAD TO DIFFERENT CONSEQUENCES SATISFYING THE SAME NEED • IF YOU ARE PROVIDING CONSEQUENCES & THEY ARE NOT WORKING ASK THE FOLLOWING QUESTIONS TO YOURSELF: o DOES THE EMPLOYEE SEE THE CONNECTION BETWEEN THE BEHAVIOUR & THE CONSEQUENCES o DOES IT MATTER TO THE EMPLOYEE? DOES THE EMPLOYEE BELIEVE THAT THE CONSEQUENCE WILL SATISFY A NEED THAT IS IMPORTANT? o S IT WORTH THE EFFORT TO OBTAIN THE CONSEQUENCE BY PERFORMING THE BEHAVIOUR OR IS THERE ANY EASIER WAY • ANSWER TO THE ABOVE QUESTIONS INDICATES WHY THE CONSEQUENCE DOES NOT WORK A GUIDE TO USING CONSEQUENCES TO MANAGE PERFORMANCE: • CONTINUALLY MONITOR THE IMPACT OF CONSEQUENCES ON PERFORMANCE. NEVER ASSUME THAT ANY GIVEN CONSEQUENCE WILL HAVE THE SAME IMPACT ON PERFORMANCE EACH TIME IT IS USED. OVER TIME SOME CONSEQUENCE CAN LOSE THEIR EFFECT. EMPLOYEE WANTS CHANGE, & A RESULT WHAT WAS ONCE POSITIVE CONSEQUENCE COULD BECOME NEGATIVE & VIVE VERSA. THE ONLY SURE WAY TO KNOW THE EFFECT OF THE CONSEQUENCE IS TO OBSERVE ITS EFFECT ON THE BEHAVIOUR • ALWAYS ARRANGE POSITIVE CONSEQUENCE FOR ACCOMPLISHMENT WHAT WE ARE REALLY TRYING TO GAIN IS ACCOMPLISHMENT [SOMETHING VALUABLE TO
  • 30. ORGANIZATION] & NOT BEHAVIOUR [WHICH IS REALLY COST TO THE ORGANIZATION] • PROVIDE POSITIVE CONSEQUENCES FOR STEADY IMPROVEMENTS TOWARDS THE GOAL • NEVER PROVIDE NEGATIVE CONSEQUENCE FOR FAILURE TO ATTAIN AN ACCOMPLISHMENT. THIS WILL MAKE THE EMPLOYEE TO STOP ATTEMPTS TO DESIRABLE BEHAVIOUR • EMPHASIZE POSITIVE CONSEQUENCE TO ENCOURAGE CORRECT BEHAVIOUR RATHER THAN NEGATIVE CONSEQUENCES TO DISCOURAGE INCORRECT BEHAVIOR • NEGATIVE CONSEQUENCES TEACH PEOPLE WHAT NOT TO DO. THEY DON’T TEACH WHAT THEY SHOULD DO. IF YOU HAVE TO USE NEGATIVE CONSEQUENCE TO CORRECT PROBLEM-BEHAVIOR, TRY TO ENSURE THAT YOU ALSO PROVIDE POSITIVE CONSEQUENCES FOR DESIRED BEHAVIOUR • TIME THE DELIVERY OF THE CONSEQUENCE FOR MAXIMUM IMPACT. THE SHORTER THE TIME BETWEEN THE OCCURRENCE OF THE BEHAVIOUR & THE CONSEQUENCE THE MORE POWERFUL THE CONSEQUENCE IS IN RESPECT TO ITS INFLUENCE ON BEHAVIOUR • ENSURE THAT THE CONSEQUENCES YOU ARRANGE ARE TRULY CONTINGENT ON PERFORMANCE. MAKE RECOGNITION CONTINGENT ON GOOD PERFORMANCE. TO BE NICE TO EMPLOYEES, WE FUND BIRTHDAY PARTIES, COMPANY PICNICS & HOLIDAY PARTIES. WE TREAT EMPLOYEES “OH SO NICE” & YET THESE UNGRATEFUL PEOPLE DON’T PERFORM ANY BETTER. THE PROBLEM WITH PARTIES’ PICNICS & SO ON IS THAT ARE NOT CONTINGENT ON PERFORMANCE. EVERYONE CAN ATTEND REGARDLESS OF HOW WELL OR POORLY THEY HAVE PERFORMED. EVEN WHEN WE CREATE A FORMAL PROGRAM TO RECOGNIZE GOOD PERFORMANCE, THE PROGRAM FREQUENTLY BECOMES NONCONTINGENT OVER TIME. FOR EXAMPLE THE “EMPLOYEE OF THE MONTH” AWARD ORIGINALLY DESIGNED TO RECOGNIZE SUPERIOR PERFORMANCE EVENTUALLY LOOSES ANY RELATIONSHIP TO PERFORMANCE. WE DISCOVER ATUL HAS WON HE AWARD THREE TIMES IN A ROW. SURE HE STILL HAS THE BEST PERFORMANCE, BUT WE DON’T WANT TO BE
  • 31. ACCUSED OF PLAYING FAVOURITES. MAYBE WE WILL PICK THE SECOND BEST THIS TIME. SOON FOR THE SAME REASON WE ARE PICKING THE THIRD BEST & FOURTH BEST. EVENTUALLY EVERYONE GETS THE AWARD, NOT BECAUSE THEY HAVE EARNED IT, BUT BECAUSE IT IS THEIR TURN. CONCLUSION: • UNLESS THE EMPLOYEE SEES A DIRECT RELATIONSHIP BETWEEN DAY-TO-DAY BEHAVIOUR, & OBTAINING CONSEQUENCE THAT MATTERS, THAT CONSEQUENCE IS NOT TRULY CONTINGENT, & THE BEHAVIOURS WE DESIRE CANNOT BE STRENGTHENED HOW TO USE POSITIVE CONSEQUENCES TO ENCOURAGE PERFORMANCE WHEN & HOW OFTEN YOU SHOULD REINFORCE PERFORMANCE? • WHEN GOALS ARE MET • WHEN THERE IS STEADY PROGRESS TOWARDS MEETING GOALS • WHEN YOU ARE WORKING ON PERFORMANCE PROBLEM & OBSERVE THE CORRECT BEHAVIOUR HOW OFTEN TO REINFORCE PERFORMANCE: • CONTINUOUS BASIS o PROVIDE REINFORCEMENT EVERY TIME THE GOAL IS ACHIEVED o WHEN THERE IS EVIDENCE OF STEADY PROGRESS TOWARD THE GOAL o OR WHEN YOU SEE CORRECT BEHAVIOUR o ADVANTAGE:  GET HIGH LEVEL OF PERFORMANCE QUICKLY o DISADVANTAGE:  REQUIRES LOT OF REINFORCERS  LOT OF YOUR TIME TO DELIVER THE REINFORCEMENT  SO MUCH REINFORCEMENT THAT IT LOOSES ITS EFFECT • INTERMITTENT BASIS o PROVIDED ONLY AFTER MULTIPLE INSTANCES OF PERFORMANCE, OR AFTER A LAPSE OF TIME SINCE THE PREVIOUS REINFORCEMENT
  • 32. o THERE ARE FOUR TYPES OF INTERMITTENT REINFORCEMENT  VARIABLE RATIO • REINFORCEMENT PROVIDED AFTER A VARIABLE NUMBER OF INSTANCES • IT IS MOST POWERFUL REINFORCER. • IT POWER IS ATTRIBUTED TO THE UNCERTAINTY ABOUT WHEN REINFORCEMENT WILL BE GIVEN  FIXED RATIO • REINFORCEMENT PROVIDED AFTER GIVEN NUMBER OF INSTANCES OF PERFORMANCE  FIXED INTERVAL • REINFORCEMENT IS PROVIDED AFTER A SPECIFIED PERIOD OF TIME REGARDLESS OF THE NUMBER OF INSTANCES OF PERFORMANCE • PERFORMANCE PEAKS JUST PRIOR TO REINFORCEMENT, & THEN DROPS CONSIDERABLY AFTER REINFORCEMENT IS PROVIDED  VARIABLE INTERVAL • PERFORMANCE REINFORCED AFTER VARYING LENGTHS OF TIME • IF YOU WANT TO START REINFORCEMENT & YOU WANT PEOPLE TO LEARN NEW BEHAVIOUR THEN REINFORCE PERFORMANCE CONTINUOUSLY UNTIL A PATTERN OF PERFORMANCE IS ESTABLISHED • ONCE THE EMPLOYEES ARE ACCUSTOMED TO REINFORCEMENT, & LEARNED NEW BEHAVIOUR, THEN GRADUALLY MOVE TO INTERMITTENT SCHEDULE HOW TO FIND POSITIVE REINFORCERS: • PHYSICAL GESTURES FOR EXAMPLE: SMILE, HANDSHAKE • VERBAL PRAISES • A LETTER OF COMMENDATION • ASKING A PERSON FOR THEIR ADVICE OR OPINION • PROVIDING AWARD, PLAQUE, OR TROPHY • OFFERING HELP • PERSON’S PICTURE ON THE BULLETIN OR NOTICE BOARD
  • 33. • AN ARTICLE ABOUT THE PERSON IN THE LOCAL NEWSPAPER • LETTING HIM REPORT HIS RESULTS TO SENIORS • INCREASING RESPONSIBILITY • GIVING THE PERSON A CHOICE OF WORK ASSIGNMENTS • PROVIDING STATUS SYMBOLS • ETC • ETC HOW TO SELECT POSITIVE REINFORCERS: • CONSIDER THE AGE, INTERESTS, VALUES, LIKES & DISLIKES OF THOSE YOU WISH TO REINFORCE • CONSIDER WHAT YOU WISH TO REINFORCE: BEHAVIOUR OR RESULTS. REINFORCE SHOULD BE PROPORTIONAL TO THE VALUE OF BEHAVIOUR OR RESULTS WHICH YOU ARE TRYING TO REINFORCE. • OBSERVE WHAT PEOPLE DO FREQUENTLY OR WHAT PEOPLE TALK ABOUT FREQUENTLY TRY TO PICK UP ON THESE CUES • ASK PEOPLE WHAT THEY LIKE OR WHAT WOULD BE APPROPRIATE • LOOK FOR REINFORCERS, WHICH NATURALLY OCCUR AT WORKPLACE. A MAJOR ADVANTAGE IS SUCH REINFORCERS ARE READILY AVAILABLE & DON’T REQUIRE MONEY • USE TRAIL & ERROR. FOR WE DO NOT KNOW F SOMETHING IS REINFORCER UNTIL YOU OBSERVE ITS IMPACT ON BEHAVIOUR. • CHOOSE REINFORCERS THAT READILY AVAILABLE • CHOOSE REINFORCERS THAT CAN BE USED FREQUENTLY WITHOUT LOSING THEIR APPEAL HOW TO DELIVER POSITIVE REINFORCERS: • INDIVIDUALIZE NOT ONLY THE REINFORCER, BUT THE WORDS & STYLES YOU USE IN DELIVERING THE REINFORCER • PUT VARIETY IN REINFORCEMENT. NO ONE LIKES THINGS OVER & OVER. • CONSIDER WHETHER IT IS BETTER TO REINFORCE IN PUBLIC / PRIVATE OR BOTH • BE SPECIFIC.. EACH TIME YOU REINFORCE MAKE SURE YOU DESCRIBE WHAT THEY DID OR WHAT THEY ACCOMPLISHED
  • 34. • BE SINCERE. NEVER GIVE REINFORCEMENT UNLESS YOU REALLY MEAN IT. • PERSONALIZE YOUR MESSAGE. EXPRESS YOUR APPROVAL IN TERMS OF HOW YOU FEEL. WHY DID YOU LIKE WHAT THEY DID? WHAT DID IT MEAN TO YOU • MAKE YOUR REINFORCEMENT PROPORTIONAL. THE WORDS & STYLE YOU USE SHOULD MATCH THE SIGNIFICANCE OF THE ACCOMPLISHMENT. DON’T MAKE A BIG DEAL OVER A MINOR ACHIEVEMENT. NOR MINIMIZE THE IMPORTANCE OF WHAT HAS BEEN DONE BY YOUR VOICE, MANNERISM, & STYLE OF DELIVERY • DON’T MIX REINFORCEMENT WITH PUNISHMENT OR ASKING MORE. DON’T PUNISH THE HIGH PERFORMERS BY IMMEDIATELY ASKING FOR MORE • BE CONSISTENT. DON’T JUST REINFORCE WHEN YOU FEEL LIKE IT. BE CONSISTENT OVER TIME & ACROSS PEOPLE. PAY FOR PERFORMANCE TRADITIONAL APPROACH: • PAY NOT LINKED TO PERFORMANCE • PAY FUNCTION OF STATUS • MARKET DEMAND & EQUITY IMPORTANT FACTORS • PAY RISE EVERY YEAR IRRESPECTIVE OF PERFORMANCE • INCREASE IN PRODUCTIVITY GAINS NOT SHARED TYPES OF NON-TRADITIONAL PAY SYSTEMS: • GAINSHARING o EMPLOYEES & EMPLOYER SHARE PRODUCTIVITY GAINS AS PER PREDETERMINED FORMULA o EMPLOYEES ARE INVOLVED • SMALL GROUP INCENTIVE o SIMILAR TO GAINSHARING; BUT THE GAINS SHARED BY SMALLER GROUP INSTEAD OF ENTIRE DEPARTMENT / DIVISION o IT IS MANAGEMENT DIRECTED • INDIVIDUAL INCENTIVES o MAJOR PORTION OF THE COMPENSATION IS TIED TO PERFORMANCE o IT IS GETTING REPLACED BY TEAM INCENTIVE • LUMPSUM PAYMENT / BONUS o TWO TYPES:  FIRST TYPE:
  • 35. • YEARLY INCREMENT IS BEING REPLACED WITH ONE-TIME PERFORMANCE BONUS • BASIC SALARY CONTINUES TO REMAIN THE SAME o SECOND TYPE:  LUMP-SUM PAID ACROSS THE BOARD, INSTEAD OF ANNUAL AUTOMATIC PERCENTAGE INCREASE IN BASE PAY  RISE IN GIVEN BASIC SALARY  DONE TO SLOW DOWN THE GROWTH IN BASIC SALARY • PAY FOR KNOWLEDGE: o BASIC SALARY PROGRESSION IS TIED TO JOB KNOWLEDGE o GREATER THE NUMBER OF SKILLS, HIGHER THE BASIC SALARY o HIGHER BASIC SALARY CONTINUES IRRESPECTIVE OF CURRENTLY PERFORMING HIGHER SKILLED JOBS o DONE TO REDUCE JOB-CLASSIFICATION, & ENCOURAGE FLEXIBILITY • PROFIT SHARING PLANS o ANNUAL BONUS PAID BASED ON COMPANY- WIDE PERFORMANCE SERIOUS IMPLICATIONS OF PAY FOR PERFORMANCE: • WHEN SUBSTANTIAL PORTION OF PAY TIED TO PERFORMANCE, THAT PORTION BECOMES VARIABLE • NATURE OF AUTHORITY RELATIONSHIP UNDERGOES CHANGE; FOR PAY FOR PERFORMANCE TIED TO OBJECTIVE MEASURE, RATHER THAN SUBJECTIVE RATING • EMPLOYEES WILL DEMAND INCREASED SHARING OF INFORMATION IN AREAS LIKE SALES, PROFITS, RETURN ON ASSETS, CUSTOMERS, OPERATING COSTS, COMPETITORS, MARKETING STRATEGIES, & CAPITAL EXPENDITURE. THIS MEANS THE EMPLOYEES WILL HAVE TO BE TREATED AS PARTNERS • CREATES PRESSURE FOR PERFORMANCE, & COST CONTAINMENT WITHIN THE ORGANIZATION GAINSHARING:
  • 36. • A GOOD GAINSHARING FORMULA SHOULD MEET THE FOLLOWING CRITERIA: o FAIR TO THE COMPANY  ENABLE THE COMPANY TO ACHIEVE ITS OBJECTIVES  COMPANY SHOULD ALSO GET ITS FAIR SHARE IN THE GAIN SHARING FORMULA o FAIR TO THE EMPLOYEE  EMPLOYEES SHOULD GET THEIR FAIR SHARE. o UNDERSTANDABLE TO EMPLOYEES  EMPLOYEES SHOULD BE ABLE TO PREDICT WHETHER THEY WILL GET THE GAIN THIS PERIOD OR NOT o EASY TO ADMINISTER  THE FORMULA SHOULD BE EASY TO CALCULATE o FLEXIBILITY  IF GOALS CHANGES THE FORMULA SHOULD ALSO UNDERGO A CHANGE o USEFULNESS IN ISOLATING PROBLEM AREAS  SINCE GAIN-SHARING IS LINKED TO REMOVING BOTTLENECKS [PROBLEMS] THE TEAM MEMBERS SHOULD BE ABLE TO ISOLATE THE PROBLEM AREA, SO THAT THE TEAM CAN STUDY THE CAUSES OF LOW PRODUCTIVITY EXERCISE: • CAN WE HAVE GAIN-SHARING FORMULA FOR SERVICE SECTOR? • IF YES INVOLVE ONE FOR THE FOLLOWING EMPLOYEES WORKING IN A BRANCH: o BRANCH MANAGER o CASHIER o CLERK MAINTAINING ACCOUNTS OF ACCOUNT HOLDERS RANGING FROM 101 TO 200 o PEON o SECURITY GUARD HOW TO DETERMINE IF GAIN-SHARING IS RIGHT FOR YOUR ORGANIZATION? • ANSWERS TO THE FOLLOWING QUESTIONS WILL INDICATE: o COSTS ARE RISING FASTER THAN PRODUCTIVITY
  • 37. o INDIRECT LABOUR COSTS ARE GROWING; & ONLY FEW EMPLOYEES ARE COVERED BY GAIN-SHARING SCHEME o BECAUSE OF CHANGE IN TECHNOLOGY / PROCESSES, YOU WANT YOUR EMPLOYEES COOPERATE & WORK IN TEAMS o WANT YOUR EMPLOYEES TO BE INVOLVED IN IMPROVING PRODUCTIVITY & REDUCING COSTS o IF STANDARDS FOR INDIVIDUAL INCENTIVES HAVE BECOME MORE DIFFICULT TO BE SET & KEEP UP TO DATE. o IF PAY RATES ARE NOT TIED TO PERFORMANCE. o IF INEQUITIES EXISTS IN COMPENSATION. o IF EMPLOYEES ARE LESS FLEXIBLE PAY FOR KNOWLEDGE: • IT TIES BASIC SALARY TO KNOWLEDGE / SKILLS RATHER THAN TO POSITION OR TO JOB ACTUALLY PERFORMED • TWO FORMS OF PAY FOR KNOWLEDGE: o INCREASED KNOWLEDGE BASED  RANGE OF SKILLS EMPLOYEE POSSESS IN A SINGLE SPECIALTY  ALSO CALLED AS VERTICAL SYSTEMS, FOR PAY IS TIED TO THE DEPTH OF KNOWLEDGE OR SKILL IN A DEFINED JOB o MULTI-SKILLED BASED  NUMBER OF JOBS AN EMPLOYEE CAN PERFORM THROUGHOUT THE ENTIRE ORGANIZATION THE ADVANTAGES OF PAY FOR KNOWLEDGE: • GREAT FLEXIBILITY o BENEFICIAL IN HANDLING ABSENTEEISM, TURNOVER, TEMPORARY INCREASE IN WORKLOAD • LEANER STAFF o OPTIMUM UTILIZATION OF EMPLOYEES • IMPROVED PROBLEM-SOLVING o EMPLOYEE IS AWARE OF THE ENTIRE PROCESSES • IMPROVED COMMUNICATION • EFFECTIVE TWO WAY COMMUNICATION • SUPPORTS EMPLOYMENT SECURITY o IN CASE A JOB AN INDIVIDUAL IS DOING BECOMES OBSOLETE, THEN CAN BE TRANSFERRED TO
  • 38. ANOTHER JOB, RATHER THAN ASKING HIM TO GO HOME • IMPROVES JOB SATISFACTION o ALLOWS EMPLOYEE TO USE VARIETY OF SKILLS TO WORK ON THE WHOLE PROCESSES o CAN CONTROL THE WORK ENVIRONMENT DISADVANTAGES OF PAY FOR KNOWLEDGE: • INCREASES COSTS IN THREE AREAS: LABOUR, TRAINING, & ADMINISTRATION USING PAY FOR KNOWLEDGE AS AN ADJUNCT TO GAIN SHARING: • GAIN SHARING DOES NOT RECOGNIZE INDIVIDUAL’S CONTRIBUTION. THIS IS THE NORMAL GRIEVANCE ONE RECEIVES. PAY FOR KNOWLEDGE CORRECTS THIS INEQUITY. SINCE IT LINKS BASIC PAY TO VARIETY OF SKILLS AN EMPLOYEE BRINGS TO THE GROUP. THAT INDIVIDUAL IS INVALUABLE TO THE COMPANY OR TO TEAM WHO CAN DO A VARIETY OF THINGS IMPORTANT TO ACCOMPLISHMENT OF GOALS VERY WELL; INSTEAD OF DOING ONE THING EXCEPTIONALLY WELL. IT IS SUCH TYPE OF INDIVIDUAL IS REWARDED UNDER PAY FOR KNOWLEDGE. • GAINSHARING PLANS DISTRIBUTE THE AMOUNT AS A PERCENTAGE OF PAY; THUS EMPLOYEES WITH A HIGHER BASIC SALARY WILL RECEIVE HIGHER AMOUNT. AND PAY FOR KNOWLEDGE BRINGS BASIC SALARY & SKILLS IN LINE. AS A RESULT LARGE AMOUNTS OF GAINSHARING AMOUNT GOES TO SUCH EMPLOYEES WITH A WIDER VARIETY OF SKILLS, & THAT IS THE KEY TO FUTURE – FLEXIBILITY. • INITIALLY WHEN GAINSHARING PLAN IS INTRODUCED THERE ARE MANY OPPORTUNITIES FOR MAKING RELATIVELY SIMPLE PERFORMANCE IMPROVEMENTS THAT WILL LEAD TO GAINS. OVER TIME HOWEVER, PROBLEM SOLVING BECOMES MORE DIFFICULT, FOR SIMPLE PROBLEMS HAVE ALREADY BEEN SOLVED. ADDITIONAL GAINS REQUIRE GREATER SOPHISTICATION, FLEXIBILITY, & THE ABILITY TO TACKLE SUCH PROBLEMS. PAY FOR KNOWLEDGE SYSTEMS ENCOURAGE THE DEVELOPMENT OF THIS FLEXIBILITY & BROADEN THE FOCUS
  • 39. • GAINSHARING IS A COMPLETE APPROACH TO MANAGEMENT THAT ENCOURAGES TEAMWORK, COOPERATION EMPLOYEE INVOLVEMENT, EMPLOYEE COMMITMENT TO ORGANIZATION GOALS. PAY FOR KNOWLEDGE EXTENDS THIS PHILOSOPHY BY ENCOURAGING EMPLOYEES TO LEARN MORE ABOUT THE BUSINESS & TO DEVELOP A WIDE RANGE OF SKILLS THAT CAN BE USED TO SUPPORT ORGANIZATIONAL OBJECTIVES. CONCLUSIONS: • INITIALLY PAY FOR KNOWLEDGE WILL INCREASE THE PAYROLL COST, IT IS IN THE LONG RUN THAT PAYS FOR KNOWLEDGE STARTS PAYING DIVIDENDS. • HENCE PAY FOR KNOWLEDGE SHOULD BE ADOPTED AFTER GAINSHARING HAS BEEN INSTALLED & EMPLOYEES HAVE BECOME ACCUSTOMED TO IT. • GAINSHARING IS SHORT-TERM FOCUS, WHILE PAY FOR KNOWLEDGE HAS LONG-TERM FOCUS. • IN BUSINESS WE ALWAYS FOCUS ON LONG-TERM OBJECTIVES CONSEQUENCES • A CONSEQUENCE HAS AN EFFECT ON WHICH TWO ASPECTS OF OUR BEHAVIOUR? • HOW MANY TYPES OF BEHAVIOURS ARE THERE?
  • 40. • A BEHAVIOUR WHEREIN WE HAVE NO CONTROL WHAT IS IT CALLED AS? • A BEHAVIOUR WHEREIN WE HAVE CONTROL, WHAT IS IT CALLED AS? • WHICH WORK BEHAVIOUR IS INFLUENCED BY CONSEQUENCES? • WHAT FOLLOWS BEHAVIOUR? • WHAT DOES CONSEQUENCE DETERMINE? • HOW MANY TYPES OF CONSEQUENCES ARE THERE? • EXPLAIN REINFORCEMENT? • WHAT IS THE OTHER NAME FOR IT? • EXPLAIN PUNISHMENT? • WHAT IS THE OTHER NAME FOR IT? • WHEN WILL PUNISHMENT HAVE A LONG-TERM EFFECT? • WHAT TYPE OF BEHAVIOUR DOES AN EMPLOYEE LEARN FROM PUNISHMENT? • CONSEQUENCE WILL EFFECTIVE FROM WHOSE POINT OF VIEW? • WHAT SHOULD CONSEQUENCE DO TO AN EMPLOYEE? • STATE THE NEEDS OF EMPLOYEE AT WORKPLACE? • WHAT SHOULD THE EMPLOYEE SEE BETWEEN BEHAVIOUR & CONSEQUENCE? • WHEN WILL BE CONSEQUENCE BE EFFECTIVE? • IF THERE ARE TWO NEEDS OF AN EMPLOYEE, THEN ON WHICH NEEDS WILL THE CONSEQUENCES HAVE AN EFFECT? • DOES EFFORT HAVE ANY RELATIONSHIP WITH CONSEQUENCES?
  • 41. • WHAT IS THE RELATIONSHIP BETWEEN EFFORT, BEHAVIOUR & NEED IN CONSEQUENCES? • WHY SHOULD CONSEQUENCES BE CONTINUOUSLY MONITORED? • CONSEQUENCES SHOULD FOCUS ON BEHAVIOUR OR RESULTS? • SHOULD WE PROVIDE POSITIVE CONSEQUENCES FOR CONTINUOUS IMPROVEMENTS TOWARDS GOAL? • SHOULD CONSEQUENCES BE PROVIDED FOR FAILURES? • TO ENCOURAGE CORRECT BEHAVIOUR, WHAT TYPE OF CONSEQUENCES SHOULD BE ADOPTED? • WHAT DOES NEGATIVE CONSEQUENCE TEACH? • IF YOU HAVE TO CORRECT A PROBLEMATIC BEHAVIOUR THE TYPE OF CONSEQUENCES SHOULD ONE USE? • WHAT IS THE RELATIONSHIP BETWEEN TIME & CONSEQUENCES? • ON WHAT SHOULD CONSEQUENCES BE BASED UPON? • HOW DO WE REINFORCE PERFORMANCE? • WHAT IS THE ADVANTAGE OF CONTINUOUS REINFORCEMENT? • WHAT ARE THE DISADVANTAGES OF CONTINUOUS REINFORCEMENT? • WHAT IS INTERMITTENT REINFORCEMENT? • HOW MANY TYPES OF INTERMITTENT REINFORCEMENT ARE THERE? • WHY IS VARIABLE RATIO MOST POWERFUL REINFORCER? • WHAT IS FIXED RATIO OF REINFORCEMENT? • WHAT IS THE DISADVANTAGE OF FIXED INTERVAL REINFORCEMENT?
  • 42. • WHAT IS VARIABLE INTERVAL REINFORCEMENT? • IF YOU WANT TO START REINFORCEMENT, WITH WHICH ONE WOULD YOU BEGIN FIRST & WHY? • NAME SOME OF THE FEW REIN FORCERS, WHICH YOU FIND AT WORKPLACE? • HOW DO YOU SELECT POSITIVE REINFORCES AT WORKPLACE? • STATE THE TYPES OF NON-TRADITIONAL, WHICH EXISTS TODAY? • EXPLAIN GAIN SHARING? • EXPLAIN SMALL GROUP INCENTIVE? • EXPLAIN INDIVIDUAL INCENTIVE? • EXPLAIN THE TWO TYPES OF ANNUAL INCREMENT, WHICH ARE GIVEN TO CONTROL GROWTH IN BASIC SALARY? • EXPLAIN PAY FOR KNOWLEDGE? • EXPLAIN PROFIT SHARING PLANS? • STATE THE IMPLICATIONS FOR PAY FOR PERFORMANCE? • STATE THE CHARACTERISTICS OF GAIN SHARING? • HOW DO YOU DETERMINE IF GAIN SHARING IS RIGHT FOR YOU? • STATE THE TWO TYPES OF PAY FOR KNOWLEDGE? • STATE THE ADVANTAGES FOR PAY FOR KNOWLEDGE? • STATE THE DISADVANTAGES FOR PAY FOR KNOWLEDGE? • HOW TO USE PAY FOR KNOWLEDGE AS AN ADJUNCT TO GAIN SHARING?
  • 43. HOW TO DESIGN & INSTALL AN EMPLOYEE INVOLVEMENT SYSTEM INTRODUCTION: • PEOPLE PERFORMING THE WORK HAVE THE BEST IDEAS ABOUT HOW IT SHOULD BE PERFORMED. • MOREOVER, PEOPLE DON’T RESIST THEIR OWN IDEAS. • A SOLUTION TO A PROBLEM IS MUCH MORE LIKELY TO BE DEVELOPED & SUCCESSFULLY IMPLEMENTED WHEN WE GET EMPLOYEES INPUT INVOLVEMENT TECHNIQUES: • THEY ARE THREE TRADITIONAL TECHNIQUES: o EMPLOYEE SURVEYS o SUGGESTION SYSTEMS o QUALITY CIRCLES EMPLOYEE SURVEYS: • DONE ANNUALLY OR BIANNUALLY • CONSISTS OF WRITTEN QUESTIONNAIRES, WHICH IS DISTRIBUTED TO ALL THE EMPLOYEES
  • 44. • SOMETIMES THE QUESTIONNAIRE IS SUPPLEMENTED BY INTERVIEW. • THE SURVEYS COLLECTS DATA CONCERNING EMPLOYEE OPINIONS, ATTITUDES, JOB SATISFACTION, REACTION TO O’S POLICY OR MANAGEMENT’S DECISION • IT SERVES AS A GOOD FEEDBACK TO THE MANAGEMENT • IT HAS THE FOLLOWING LIMITATIONS: o RELATIVELY INFREQUENT o FEEDBACK IS SHORT & CRYPTIC o VALIDITY DEPENDS UPON ITS DESIGN. QUESTIONS MAY BE POORLY WORDED, OR BIASED, OR VAGUE o DEPENDS UPON THE WAY IT IS INTERPRETED. MANAGEMENT MAY DISREGARD FINDINGS INCONSISTENT WITH THEIR INTEREST o FEEDBACK NOT PROVIDED TO EMPLOYEES. • RESULT IT BECOMES A JOKE, OR AN OPPORTUNITY FOR THE EMPLOYEES TO VENT THEIR FRUSTRATIONS SUGGESTION SCHEME: • SUGGESTIONS INVITED FROM THE EMPLOYEES ON COST SAVINGS. • IF SUGGESTION ACCEPTED, EMPLOYEE GETS SHARE OF THE SAVINGS • IT IS A WIN-WIN SITUATION. FOR BOTH PARTIES MONETARILY BENEFIT • IT HAS THE FOLLOWING LIMITATIONS: o SUGGESTIONS ARE FEW o WHEN SUGGESTIONS ARE SUBMITTED, THEY ARE VAGUE & UNDEVELOPED, & THEY USUALLY CANNOT BE ACCEPTED. IF THE IDEA IS BASICALLY IS GOOD, & MANAGEMENT DECIDES TO DEVELOP IT FURTHER SO THAT IT CAN BE IMPLEMENTED. IN SUCH SITUATION WHO GETS THE CREDIT o SOMETIMES EMPLOYEES GIVE SUGGESTIONS PERTAINING TO OTHER DEPARTMENTS o EMPLOYEES ARE NOT RESPONSIBLE FOR IMPLEMENTING THEIR SUGGESTIONS. o SOMETIMES THE IMPLEMENTATION OF SUGGESTIONS INVOLVES HEAVY EXPENDITURE o OFTEN THERE IS A LENGTHY DELAY BETWEEN THE SUBMISSION OF THE IDEA & ITS CONSIDERATION & EVENTUAL ADOPTION. FEEDBACK TO THE
  • 45. EMPLOYEE SUBMITTING THE SUGGESTION IS DELAYED & MEANWHILE SOME OTHER EMPLOYEE MIGHT HAVE MADE A SIMILAR SUGGESTION. IN SUCH SITUATION, THE ISSUE WHO GETS THE CREDIT IF THE SUGGESTION IS IMPLEMENTED. OR THE IDEA WAS ALREADY UNDER CONSIDERATION BY MANAGEMENT. EVENTUALLY WITH DELAY & CONFUSION ABOUT WHO GETS THE CREDIT FOR THE IDEA, EMPLOYEE BECOMES FRUSTRATED WITH THE WHOLE SYSTEM • RESULT ALSO BECOMES A JOKE QUALITY CIRCLE: • EMPLOYEES PARTICIPATE IN THE IDENTIFICATION & RESOLUTION OF PROBLEMS • EMPLOYEES ARE TRAINED IN PROBLEM-SOLVING TECHNIQUE • IT DID RESULT IN LOT OF SAVINGS FOR THE O • IT HAD THE FOLLOWING LIMITATIONS: o QUALITY CIRCLES WERE SUCCESSFUL IN SOFT ISSUES, BUT FAILED IN HARD ISSUES o THE MEETINGS WERE HELD DURING WORKING HOURS o THOUGH LOT OF TIME WAS SPENT ON MEETINGS THE KIND OF IMPROVEMENT IN QUALITY, COST REDUCTION, OR CUSTOMER SERVICE WAS NOT AS PER EXPECTATION o PROGRAM WAS ADMINISTERED BY STAFF FUNCTIONS LIKE HR / QA o LINE MANAGERS DID NOT SEE QUALITY CIRCLE AS PART OF THEIR DAY TO DAY OPERATIONS o IT WAS A VOLUNTARY PROGRAM. ALL EMPLOYEES DID NOT PARTICIPATE. • RESULT IT BECAME A GIMMICK OR LATEST MANAGEMENT FAD LEARNING FROM INVOLVEMENT SYSTEM:
  • 46. • VOLUNTARY PROGRAMS DO NOT WORK • MANAGEMENT DIRECTION & PARTICIPATION IS MANDATORY • INVOLVEMENT CANNOT BE PERIPHERAL TO RUNNING THE BUSINESS • EVERY EMPLOYEE MUST BE TRAINED IN PROBLEM- SOLVING SKILLS; & NOT JUST FEW • CROSS-FUNCTIONAL TEAMS & SPECIAL TASK FORCES SHOULD ADDRESS CROSS-DEPARTMENTAL PROBLEMS AN INVOLVEMENT SYSTEM THAT WORKS: • CREATE WORK GROUP TEAMS • EMPLOYEES IN EACH DIVISION, DEPARTMENT, SHIFT & SO ON ARE MEMBERS OF A WORK GROUP TEAM. THERE ARE TEAMS AT THE SENIOR MANAGEMENT LEVEL, MIDDLE MANAGEMENT LEVEL, SUPERVISORY LEVEL, & WORKER LEVELS • MEMBERSHIP IS MANDATORY. • THE MPM IS NOT A SPECIAL PROGRAM • MPM TEAMS DIFFER FROM A TRADITIONAL O IN THREE WAYS: o THEIR ACTIVITIES CENTER AROUND A REGULAR TEAM MEETING THAT IS SIGNIFICANTLY DIFFERENT FROM NORMAL STAFF MEETINGS o THE MANAGER / SUPERVISOR’S ROLE UNDERGOES CHANGE o EMPLOYEE ASSUME RESPONSIBILITIES THAT WERE TRADITIONALLY RESERVED FOR MANAGERS / SUPERVISORS TEAM MEETINGS o INTRODUCTION:  MEETINGS ARE NOT UNUSUAL IN ANY O  MANAGERS TALK & PARTICIPANTS LISTEN  IN THE MEETINGS THE FOLLOWING THINGS HAPPEN: • UPPER LEVEL DECISIONS ARE ANNOUNCED • O NEWS ARE REPORTED • ORDERS ARE ISSUED • MISTAKES ARE CRITICIZED • POOR PERFORMANCE IS BERATED  EMPLOYEES PARTICIPATION MEANS: • TO ANSWER QUESTIONS
  • 47. • TO REPORT ON THE STATUS OF PROJECTS / ACTIVITIES • AND OCCASIONALLY TO DEFEND THEMSELVES FROM ATTACK • SOMETIMES TO COMPLAIN, SOCIALIZE, POINT FINGERS • OR FREQUENTLY DUMP PROBLEMS ON HIGHER UPS  ONLY PROBLEMS ARE DISCUSSED, NO SOLUTIONS ARE FOUND  THE SAME PROBLEM CONTINUES TO SURFACE IN ALL CONSECUTIVE MEETINGS, UNTIL IT IS FORGOTTEN, SOME NEW PROBLEM TAKES ITS PLACE MPM MEETING • THEY HAVE BOTH SPECIFIC OBJECTIVES, & A SPECIFIC STRUCTURE. • THE OBJECTIVES OF MPM MEETINGS ARE: o TO SHARE INFORMATION / IDEAS o PASS DOWN INFORMATION ABOUT GOALS, CONCERNS, & PRIORITIES OF HIGHER LEVELS o TO MONITOR & PROVIDE FEEDBACK ON PERFORMANCE. EACH TEAM HAS A CLEARLY DEFINED MISSION & MEASURE OF PERFORMANCE IN CRITICAL AREAS. THE TEAM MEETING IS MAJOR FOCAL POINT FOR REVIEWING GROUP PERFORMANCE IN CRITICAL AREAS ON A REGULAR BASIS o TO RECOGNIZE & REINFORCE GOOD PERFORMANCE o TO GET EVERYONE’S INPUT & IDEAS FOR IMPROVING PERFORMANCE. A PORTION OF EACH TEAM MEETING IS SET ASIDE FOR PROBLEM IDENTIFICATION, ANALYSIS & THE DEVELOPMENT OF ACTION PLANS TO SOLVE PROBLEMS o TO ESTABLISH ACCOUNTABILITY FOR ACTION. STATUS OF ACTION PLAN & TASK ASSIGNMENTS FROM PREVIOUS MEETINGS ARE REVIEWED. o THE AGENDA FOR MEETING THE ABOVE OBJECTIVES ARE:  FOLLOW UP ITEMS  THE LEADER OPENS EACH MEETING BY RESPONDING TO QUESTIONS, IDEAS, CONCERNS &
  • 48. OR RECOMMENDATIONS FROM THE PREVIOUS TEAM MEETINGS. USUALLY THERE ARE ONE OR MORE ITEMS THAT THE LEADER HAD AGREED TO DISCUSS WITH HIGHER LEVELS, WHICH THE LEADER REPORTS BACK TO THE TEAM MEMBERS ON THE STATUS OF THOSE ITEMS. AFTER THE LEADER IS FINISHED, INDIVIDUAL TEAM MEMBERS WHO HAD TASK ASSIGNMENTS FROM THE PREVIOUS MEETINGS ARE CALLED UPON TO REPORT ON THE STATUS OF THOSE ASSIGNMENTS • PERFORMANCE FEEDBACK:  REVIEW GROUP PERFORMANCE ON KEY INDICATORS FOR THE CURRENT PERIOD. DONE IN GRAPHICAL FORMS. THE FOCUS OF DISCUSSION IS ON POSITIVE & NEGATIVE TRENDS IN PERFORMANCE OVER TIME • RECOGNITION & REINFORCEMENT:  DONE FOR PERFORMANCE IMPROVEMENT OR GOAL ATTAINMENT • PROBLEM-SOLVING & DEVELOPING OF ACTION PLANS:  TEAM IDENTIFIES ONE OR MORE PROBLEMS THAT DESERVE ATTENTION. THESE PROBLEMS USUALLY RELATE TO PERFORMANCE ON THE KEY INDICATORS BEING TRACKED BY THE GROUP. PROBLEMS OF CROSS-FUNCTIONAL, CROSS- DEPARTMENTAL, ARE REFERRED BY THE TEAM TO A HIGHER LEVEL TEAMS FOR RESOLUTION OR ASSIGNMENT TO A SPECIAL CROSS- FUNCTIONAL TASK FORCE • NEWS / ANNOUNCEMENT & MEETING CONCLUSIONS:
  • 49. • THE FINAL SEGMENT OF THE TEAM MEETING IS DEVOTED TO ANNOUNCEMENTS & GENERAL NEWS OF INTEREST TO TEAM MEMBERS. THE MEETING IS CLOSED WITH A BRIEF RECAP OF THE DECISIONS THAT WERE MADE BY THE TEAM CONCERNING ACTION PLANS & TASK ASSIGNMENTS ROLE CHANGE OF MANAGERS, SUPERVISORS, & EMPLOYEE: • MANAGERS & SUPERVISORS o PROVIDE STRUCTURE & INFORMATION o FACILITATE MEETINGS o TEACH / COACH / GUIDE o MANAGE RELATIONSHIPS WITH EXTERNAL GROUPS TO ENSURE THAT THE TEAM HAS EXTERNAL RESOURCES TO SUPPORT THE ACCOMPLISHMENT OF ITS OBJECTIVES • EMPLOYEES: o INQUIRE o LEARN o PARTICIPATE ACTIVELY IN PROBLEM SOLVING & DECISION-MAKING. ACTION PLANS ARE DEVELOPED THROUGH GROUP CONSENSUS. o ASSUME INCREASED RESPONSIBILITY FOR MONITORING & CONTROLLING THEIR OWN BEHAVIOUR o MONITOR RESULTS OF ACTION STEPS & TAKES FOLLOW-UP ACTION AS DECIDED BY THE GROUP o RESPONSIBILITY FOR PERFORMANCE RESTS WITH THE TEAM AS A WHOLE BEYOND FUTURE: INTRODUCTION: • THE FUTURE MANAGEMENT PRACTICE IS “SELF- MANAGED TEAM” SELF-MANAGED TEAMS: • THEY ARE SEMI-AUTONOMOUS WORK TEAMS • CONSISTS OF 5-15 MEMBERS
  • 50. • EACH TEAM HAS NATURAL BOUNDARIES. THAT IS, EACH TEAM PRODUCES A WHOLE PRODUCT, COMPLETES AN ENTIRE PROCESS, OR PROVIDES COMPLETE SERVICE. IN SHORT EACH TEAM IS A SMALL BUSINESS UNIT UNTO ITSELF • THE OUTPUT OF ONE TEAM BECOMES THE INPUT OF ANOTHER TEAM • BEYOND THE TEAM THERE ARE NO MANAGERS, OR SUPERVISORS IN THE TRADITIONAL SENSE. WE HAVE SUPPORT TEAM, OR COORDINATORS • IN PLANT THE SUPPORT TEAM CONSISTS OF PLANT MANAGER, THE HR MANAGER, THE QA MANAGER, AN ACCOUNTANT, & ENGINEERING MANAGER • COORDINATORS ARE SIMILAR TO LINE SUPERVISORS WITH TECHNICAL, BEHAVIORAL, & OPERATIONAL RESPONSIBILITIES. THEY ACT IN AN ADVISORY RATHER THAN IN A DIRECTIVE CAPACITY. THEY HELP THE TEAM WHEN REQUIRED TO DO SO BY THE TEAM • THE TEAM IS SELF-RUNNING, & SELF MANAGED. TEAM MEMBERS AS A GROUP MAKE JOB ASSIGNMENTS, PRODUCTION DECISIONS, HOLD THEIR OWN TEAM MEETINGS, SOLVE PROBLEMS, IMPLEMENT SOLUTIONS, ORDER THEIR OWN SPARE PARTS & SUPPLIES, PLAN & SCHEDULE THEIR OWN WORK, SELECT TEAM MEMBERS, EVALUATE TEAM MEMBERS’ PERFORMANCE, & SO ON. PRACTICALLY ALL FUNCTIONS TRADITIONALLY PERFORMED BY MANAGERS, OR SUPERVISORS ARE PERFORMED BY THE TEAM • WITHIN TEAMS THERE ARE NO JOB-DESCRIPTIONS, & FEW JOB CLASSIFICATION. TEAM MEMBERS ARE CROSS TRAINED & CAPABLE OF PERFORMING MOST IF NOT ALL THE JOBS REQUIRED FOR TEAM PERFORMANCE, & THERE IS OFTEN PAY FOR KNOWLEDGE SYSTEM TO ENCOURAGE THIS FLEXIBILITY • THE TEAM ITSELF HAS WIDE DISCRETION TO DECIDE HOW TASKS WILL BE PERFORMED, & WHO WILL BE RESPONSIBLE FOR SPECIFIC TASKS HOW THE WORK PLACE CHANGES WITH SELF MANAGED TEAMS • FREQUENT EXCHANGES OF VERBAL REWARDS [COMPLIMENTS, THANK YOU’S PRAISE] AMONG TEAM MEMBERS FOR USEFUL OR HELPFUL ACTION
  • 51. • GROUP MEMBERS DISCIPLINE EACH OTHER. THERE IS A STRONG PEER PRESSURE FOR EVERYONE TO CONTRIBUTE TO THE PERFORMANCE OF THE GROUP • EMPLOYEES AGREE TO ROTATE JOBS, SO THAT JOBS ARE SHARED EQUALLY ON WEEKLY BASIS • WORK PROBLEMS AMONG THEMSELVES • EMPLOYEES REGULARLY DISCUSS PRODUCTION SCHEDULING, PRODUCTION GOALS, PERFORMANCE LEVELS & SO ON. THEY REFER THEIR ACTIVITIES AS “OUR BUSINESS” • TEAM PERFORMANCE IS DISPLAYED THROUGH GRAPHS AT WORK PLACE • EMPLOYEES VOLUNTARILY SOUGHT OUT & ACQUIRED NEW KNOWLEDGE OR SKILLS NEEDED TO SOLVE THE PROBLEMS, & THIS THEY DO SO AT THEIR OWN TIME • TEAM MEMBERS AT REGULAR INTERVALS SEEK FEEDBACK ON THEIR WORK PERFORMANCE • THE TEAM MEMBERS MANAGED ENTRY & EXIST FROM THEIR TEAM • NO SPECIFIC SET OF RULES GOVERNED ASSIGNMENT OF EMPLOYEES TO TEAM, IT WAS JUST WORKED OUT AMONG VARIOUS TEAMS NEW ROLES OF SUPERVISORS & MANAGERS: o PLAYS ENABLING ROLE o IS RESPONSIBLE FOR:  BUILDING TEAM COMPETENCE & SKILLS • EDUCATES & COACHES THE TEAM MEMBERS TO BE SELF-DIRECTED & SELF-CONTROLLING • MAKE SURE THAT GOALS ARE CLEAR & SHARED • HELP TEAM TO DEVISE STRATEGIES FOR WINNING & LEARN FROM SET BACKS • AS THE TEAM MATURES, THE SUPERVISOR DELEGATES MORE & MORE TO THEM, COACHING THEM UNTIL HE FEELS CONFIDENT THAT THEY WILL MAKE EFFECTIVE DECISIONS  MANAGE LINKS WITH OTHER COMPONENTS OF BUSINESS
  • 52. • MAKE SURE THAT THE TEAM RECEIVES THE NECESSARY RESOURCES IT NEEDS TO FUNCTION & IS INTEGRATED INTO OVERALL BUSINESS STRATEGY • IS A LINK IN THE COMMUNICATION CHAIN o SHOULD HAVE EXCEPTIONAL INTERPERSONAL SKILLS, & ABILITY TO ACQUIRE AUTHORITY AS RESULT OF TRUST & RESPECT RATHER THAN OF POSITION o PROVIDE TECHNICAL SUPPORT HOW TO DETERMINE IF SMT ARE RIGHT FOR YOU? • ANSWERS TO THE FOLLOWING QUESTIONS DETERMINES IF SMT IS RIGHT FOR YOUR O: o WILL SMT HELP YOU TO OBTAIN YOUR STRATEGIC BUSINESS OBJECTIVES? o DO THE ADVANTAGES OF SELF-MANAGED TEAMS OUTWEIGH THE COSTS? o CAN YOU BREAK THE WORK TO BE PERFORMED INTO LOGICAL BUSINESS UNITS? o CAN YOU HANDLE THE DISPLACEMENT OF MIDDLE MANAGERS & SUPERVISORS IN A MANNER THAT IS CONSISTENT WITH YOUR VALUES? o ARE EMPLOYEES PREPARED TO ASSUME NEW ROLES IN SMT? o CAN YOUR EXISTING ADMINISTRATIVE PROCEDURES & PRACTICES SUPPORT SMT?
  • 53. • EMPLOYEE INVOLVEMENT • WHO HAVE THE BEST IDEA ABOUT WORK? • WHEN CAN WE DEVELOP & SUCCESSFULLY IMPLEMENT A SOLUTION TO A PROBLEM? • NAME THE THREE-EMPLOYEE INVOLVEMENT TECHNIQUE? • WHAT DOES EMPLOYEE SURVEY COLLECT? • STATE ANY ONE LIMITATION OF EMPLOYEE SURVEY? • ON WHAT ARE SUGGESTION INVITED FROM EMPLOYEES? • WHAT DO EMPLOYEE RECEIVES IF THEIR SUGGESTIONS ARE ACCEPTED? • STATE ANY ONE LIMITATIONS OF SUGGESTION SCHEME? • WHAT I THE EMPLOYEE ROLE IN QUALITY CIRCLE? • IN QUALITY CIRCLE FOR WHAT ARE THE EMPLOYEES ARE TRAINED? • IN WHICH ISSUES WERE QUALITY CIRCLE SUCCESSFUL? • WHEN DO EMPLOYEES HOLD QUALITY CIRCLE MEETING? • WHO ADMINISTERED QUALITY CIRCLE IN AN ORGANIZATION? • WHICH INVOLVEMENT TECHNIQUE WORKS IN A COMPETITIVE ENVIRONMENT? • IN MPM MEETING WHAT DO EMPLOYEE’S ASSUME? • IN TRADITIONAL TEAM MEETING WHO TALKS & WHO LISTENS? • IN TRADITIONAL TEAM MEETING WHAT DO EMPLOYEE DO? • IN TRADITIONAL TEAM MEETING WHAT IS DISCUSSED? • IN MPM MEETING WHAT IS SHARED? • IN MPM MEETING WHAT IS PASSED DOWN? • WHAT IS THE FOCAL POINT FOR REVIEWING GROUP PERFORMANCE IN CRITICAL AREA? • HOW IS PERFORMANCE IMPROVED IN TEAM MEETING? • WHICH PROBLEM DO THE TEAM MEMBERS TRACK?
  • 54. • WHAT IS THE NEW ROLE OF MANAGERS / SUPERVISORS / EMPLOYEE IF MEMBERS WORK AS TEAM • ON WHO DOES THE RESPONSIBILITY FOR PERFORMANCE LIE WHEN TEAMWORK IS INTRODUCED? • WHAT IS GOING TO BE THE FUTURE MANAGEMENT PRACTICE? • WHAT TYPE OF WORK TEAM IS SELF-MANAGEMENT TEAM? • WHAT DOES EACH SELF-MANAGEMENT TEAM HAVE? • WHO ARE THE MEMBERS IN SUPPORT TEAM? • WHO ARE THE MEMBERS OF COORDINATING TEAM? • IN WHAT CAPACITY DO THE SUPERVISORS WORK WHERE SELF-MANAGEMENT TEAM IS IN OPERATION? • STATE ANY TWO CHARACTERISTICS OF SELF- MANAGEMENT TEAM? • WHY ARE THERE NO JOB DESCRIPTION & JOB CLASSIFICATION WHERE SELF-MANAGEMENT TEAM EXIT? • HOW IS FLEXIBILITY ENCOURAGED IN SELF- MANAGEMENT TEAM? • HOW DO THE SELF-MANAGEMENT TEAM MEMBERS PERFORM THEIR ACTIVITIES? • WHICH COSTS GOES UP IF SELF-MANAGEMENT TEAM IS IN OPERATION?
  • 55. CAREER MANAGEMENT WHY IS CAREER MANAGEMENT IMPORTANT? • CM IS A PROCESS THROUGH WHICH EMPLOYEES: o BECOME AWARE OF THEIR OWN INTERESTS, VALUES, STRENGTHS, & WEAKNESS o OBTAIN INFORMATION ABOUT JOB OPPORTUNITIES WITHIN THE O o IDENTIFY CAREER GOALS o ESTABLISH ACTION PLANS TO ACHIEVE CAREER GOALS • CM IS IMPORTANT FROM BOTH THE EMPLOYEES’ PERSPECTIVE & THE O’S PERSPECTIVE • FROM THE O POINT OF VIEW THE FAILURE TO MOTIVATE EMPLOYEES TO PLAN THEIR CAREERS CAN RESULT IN o SHORTAGES OF EMPLOYEES o LOWER EMPLOYEE COMMITMENT o MONEY SPENT ON T& D GOING DOWN THE DRAIN • FROM THE EMPLOYEE’S PERSPECTIVE, LACK OF CM CAN RESULT IN o FRUSTRATION o FEELING OF NOT BEING VALUED IN THE O o CANNOT FIND SUITABLE EMPLOYMENT • O NEEDS TO HELP EMPLOYEES MANAGE THEIR CAREERS TO MAXIMIZE THEIR CAREER MOTIVATION • CAREER MOTIVATION HAS THREE ASPECTS: o CAREER RESILIENCE  EXTENT TO WHICH EMPLOYEES ARE ABLE TO COPE WITH SET BACKS o CAREER INSIGHT
  • 56.  KNOWING ABOUT THEIR INTERESTS / STRENGTHS / WEAKNESS  AND HOW IT RELATES TO THEIR CAREER GOALS o CAREER IDENTITY  DEFINING THEIR PERSONAL VALUES ACCORDING TO THEIR WORK • CAREER MOTIVATION CREATES VALUE FOR BOTH O & INDIVIDUALS o O’S VALUE:  INNOVATION  EMPLOYEES ADAPTING TO UNEXPECTED CHANGES  COMMITMENT TO O  PRIDE IN WORK o EMPLOYEE’S VALUE:  BE AWARE OF SKILL STRENGTH / WEAKNESS  PARTICIPATE IN LEARNING ACTIVITIES  COPE WITH LESS IDEAL WORKING CONDITION  AVOID SKILL OBSOLESCENCE • CM IS POSITIVELY INFLUENCED BY HOW MUCH O PROVIDE OPPORTUNITIES FOR ACHIEVEMENT, ENCOURAGEMENT FOR DEVELOPMENT, & INFORMATION ABOUT CAREER OPPORTUNITIES • CM SYSTEMS HELP IDENTIFY THESE OPPORTUNITIES & PROVIDE CAREER INFORMATION IN THE FOLLOWING WAYS: o HOW CM CAN HELP O TO COPE WITH COMPETITIVE CHALLENGES o THE POSITIVE OUTCOMES THAT CAN RESULT FROM CM WHAT IS CAREER? • SEQUENCE OF POSITIONS HELD WITHIN AN OCCUPATION • MOBILITY WITHIN THE O • DESCRIBES THE CHARACTERISTICS OF THE EMPLOYEE • EACH EMPLOYEE’S CAREER CONSISTS OF DIFFERENT JOBS, POSITIONS & EXPERIENCES PROTEAN CAREER:
  • 57. • A CAREER THAT FREQUENTLY CHANGES BASED ON BOTH CHANGES IN THE ‘S INTERESTS, ABILITIES, & VALUES & CHANGES IN THE WORK ENVIRONMENT COMPARISON BETWEEN CAREER & PROTEAN CAREER DIMENSION CAREER PROTEAN CAREER GOAL PROMOTIONS PSYCHOLOGICAL SUCCESS PSYCHOLOGICAL SECURITY FOR EMPLOYABILITY CONTRACT LOYALTY FOR FLEXIBILITY RESPONSIBILITY COMPANY EMPLOYEE FOR CAREER PATTERN LINEAR & EXPERT SPIRAL & TRANSITORY EXPERTISE KNOW HOW LEARN HOW DEVELOPMENT HEAVY RELIANCE GREATER ON FORMAL RELIANCE ON TRAINING RELATIONSHIPS & JOB EXPERIENCES A MODEL OF CAREER DEVELOPMENT • A CAREER DEVELOPMENT [CD] IS THE PROCESS BY WHICH EMPLOYEES PROGRESS THROUGH A SERIES OF STAGES, EACH CHARACTERIZED BY A DIFFERENT SET OF DEVELOPMENTAL TASKS, ACTIVITIES, & RELATIONSHIPS • THE FOLLOWING ARE THE MODELS FOR CD: o LIFE CYCLE MODEL  WHILE MOVING FROM ONE STAGE TO ANOTHER, THEY FACE CERTAIN DEVELOPMENTAL TASKS o ORGANIZATION BASED MODEL  EMPLOYEES HAVE TO LEARN TO PERFORM CERTAIN ACTIVITIES WHILE MOVING FROM ONE STAGE TO ANOTHER o DIRECTIONAL PATTERN MODEL  DESCRIBES THE FORM OR SHAPE OF THE CAREER • THERE ARE FOUR CAREER STAGES o EXPLORATION
  • 58. o ESTABLISHMENT o MAINTENANCE o DISENGAGEMENT • EACH CAREER STAGE IS CHARACTERIZED BY DEVELOPMENTAL TASKS, ACTIVITIES, & RELATIONSHIPS • EMPLOYEES CURRENT CAREER STAGE INFLUENCES THEIR NEEDS, ATTITUDES & JOB BEHAVIOURS CHARACTERI EXPLORAT ESTABLISHM MAINTENANCE DISENGAGE STICS ION ENT MENT DEVELOPMEN IDENTIFY ADVANCEME HOLD ON TO RETIREMENT TAL TASKS INTERESTS NT, ACCOMPLISHM PLANNING, , SKILLS, GROWTH, ENTS, UPDATE CHANGE FIT SECURITY, SKILLS BALANCE BETWEEN DEVELOP BETWEEN SELF & LIFE-STYLE WORK & WORK NON WORK ACTIVITIES HELPING, MAKING TRAINING PHASING LEARNING INDEPENDE SPONSORING OUT OF FOLLOWIN NT POLICY WORK G CONTRIBUTI MAKING DIRECTION ONS S RELATIONSHI APPRENTI COLLEAGUE MENTOR SPONSOR PS TO OTHER CE EMPLOYEES AGE` LESS 30 – 45 45 – 60 61 + THAN 30 YEARS ON LESS 2 – 10 10 + 20 + THE JOB THAN 2 CAREER MANAGEMENT SYSTEMS • INCLUDES THE FOLLOWING COMPONENTS o SELF-ASSESSMENT  REFERS TO USE OF INFORMATION BY EMPLOYEES TO DETERMINE THEIR CAREER INTEREST, VALUES, APTITUDES & BEHAVIOURAL TENDENCIES
  • 59.  THIS INFORMATION IS OBTAINED THROUGH VARIOUS TESTS o REALITY CHECK  REFERS TO HOW THE O EVALUATES THEIR SKILLS & KNOWLEDGE & WHERE THEY FIT INTO O’S PLAN  THE EMPLOYEE’S MANAGERS PROVIDE THIS INFORMATION. EG. PERFORMANCE APPRAISAL o GOAL SETTING  REFERS TO THE PROCESS OF EMPLOYEES DEVELOPING SHORT / LONG TERM CAREER OBJECTIVES  THESE GOALS USUALLY RELATE TO • DESIRED POSITIONS, • LEVEL OF SKILL APPLICATION • WORK-SETTING [MOVEMENT TO CORPORATE] • SKILL ACQUISITION o ACTION PLANNING  INVOLVES EMPLOYEES DETERMINING HOW THEY WILL ACHIEVE THEIR SHORT / LONG TERM CAREER GOALS  INVOLVES ENROLLING IN TRAINING COURSE, ATTENDING SEMINARS, APPLYING FOR JOB OPENINGS ROLES OF EMPLOYEES, HR MANAGERS, MANAGERS, & O IN CM: • EMPLOYEE’S ROLE o TAKING RESPONSIBILITY FOR OWN CAREER PLANNING o TAKE INITIATIVE TO ASK FOR FEEDBACK REGARDING THEIR STRENGTH / WEAKNESS o IDENTIFY THEIR STAGE OF CD & DEVELOPMENTAL NEEDS o GAIN EXPOSURE TO A RANGE OF LEARNING OPPORTUNITIES o INTERACT WITH EMPLOYEES FROM DIFFERENT WORK GROUPS INSIDE & OUTSIDE THE O • MANAGER’S ROLE
  • 60. o TO HELP EMPLOYEES DEAL WITH CAREER ISSUES, MANAGERS NEED TO BE EFFECTIVE IN FOUR ROLES:  COACH • RESPONSIBILITIES:  PROBE PROBLEMS  LISTEN  CLARIFY CONCERNS  DEFINE CONCERNS  APPRAISER • RESPONSIBILITIES  GIVE FEEDBACK  CLARIFY O’S STANDARD  CLARIFY JOB RESPONSIBILITIES  CLARIFY O’S NEEDS  ADVISOR • RESPONSIBILITIES  GENERATE OPTIONS  ASSIST IN GOAL SETTING  PROVIDE RECOMMENDATIONS  REFERRAL AGENTS • RESPONSIBILITIES:  LINK TO CAREER MANAGEMENT RESOURCES  FOLLOW UP ON CAREER MANAGEMENT PLAN • HR MANAGER’S ROLE o PROVIDE INFORMATION ABOUT T& D OPPORTUNITIES o PROVIDE SPECIALIZED TRAINING SUCH AS TESTING TO DETERMINE EMPLOYEES’ VALUES, INTERESTS & SKILLS o HELP EMPLOYEES FOR JOB SEARCHES o OFFER CAREER COUNSELLING • O’S ROLE: o PROVIDE EMPLOYEES WITH RESOURCES NEEDED TO BE SUCCESSFUL IN CAREER PLANNING
  • 61. SPECIAL CHALLENGES IN CM PLATEAUING: • IS A SERIOUS CONCERN FOR MANY MIDDLE AGE MANAGERS. MANY MANAGERS MIGHT BE IN MAINTENANCE STAGE, WHEREIN PLATEAUING IS OF PRIMARY CONCERN • IT DEALS WITH FEELINGS & EMOTIONS OF AN EMPLOYEE • ALSO MEANS THAT THE LIKELIHOOD OF THE EMPLOYEE RECEIVING FUTURE JOB ASSIGNMENTS WITH INCREASED RESPONSIBILITY IS LOW • PLATEAUING IS NOT BAD. A PLATEAUED EMPLOYEE MAY NOT DESIRE INCREASED RESPONSIBILITIES. JOB PERFORMANCE MAY MEET THE MINIMUM ACCEPTABLE STANDARDS • PLATEAUING BECOMES DYSFUNCTIONAL WHEN THE EMPLOYEE FEELS STUCK IN A JOB THAT OFFERS NO POTENTIAL FOR PERSONAL GROWTH. SUCH FRUSTRATION RESULTS IN A POOR JOB ATTITUDE, INCREASED ABSENTEEISM & POOR PERFORMANCE • FOLLOWING ARE THE REASONS FOR PLATEAUING: o LACK OF ABILITY o LACK OF TRAINING o LOW NEED FOR ACHIEVEMENT o UNFAIR PAY DECISIONS OR CONFUSION WITH PAY RAISES o CONFUSION ABOUT JOB RESPONSIBILITIES o SLOW O’S GROWTH RESULTING IN REDUCED DEVELOPMENT OPPORTUNITIES • PLATEAUED EMPLOYEES SHOULD BE ENCOURAGED TO BECOME INVOLVED IN DEVELOPMENTAL
  • 62. OPPORTUNITIES, INCLUDING TRAINING COURSES, JOB EXCHANGES, & SHORT TERM ASSIGNMENTS IN WHICH THEY EXAMINE THEIR EXPERTISE OUTSIDE THEIR DEPARTMENT • PLATEAUED EMPLOYEES MAY NEED CAREER COUNSELING TO HELP THEM UNDERSTAND WHY THEY ARE PLATEAUED, & THE OPTIONS FOR DEALING WITH THE PROBLEM • EMPLOYEES SHOULD BE ENCOURAGED TO REALITY TEST THE SOLUTIONS THEY BELIEVE WILL SOLVE THEIR PLATEAUING THROUGH DISCUSSIONS WITH THEIR MANAGER, COWORKERS, & HR MANAGERS THIS IS NECESSARY TO ENSURE THAT THEIR SOLUTION IS REALISTIC GIVEN THE RESOURCES AVAILABLE IN THE O. • AT TIMES IT MAY BE IN THE BEST INTEREST OF THE EMPLOYEE IF HE IS ENCOURAGED TO LEAVE THE O SKILL OBSOLESCENCE • OBSOLESCENCE IS REDUCTION IN AN EMPLOYEE’S COMPETENCE RESULTING FROM LACK OF KNOWLEDGE OF NEW WORK PROCESSES, TECHNIQUES & TECHNOLOGIES THAT HAVE DEVELOPED SINCE THE EMPLOYEE COMPLETED HIS EDUCATION. • OBSOLESCENCE NEEDS TO BE AVOIDED IF O IS TRYING TO BECOME LEARNING O. IF EMPLOYEE’S SKILL BECOMES OBSOLETE BOTH THE EMPLOYEE & THE O SUFFER. THE O’S CULTURE PLAYS AN IMPORTANT ROLE IN ENCOURAGING DEVELOPING THEIR SKILLS. FOLLOWING ARE THE FACTORS THAT ARE RELATED TO UPDATING SKILLS: o O’S CLIMATE  EMPHASIS ON CONTINUOUS LEARNING o MANAGER  PROVIDE CHALLENGING WORK ASSIGNMENTS  ENCOURAGE EMPLOYEES TO ACQUIRE NEW SKILLS o PEER  DISCUSS IDEAS & PROBLEMS  SHARE INFORMATION o REWARD SYSTEM  SABBATICALS
  • 63.  PAY FOR NEW IDEAS  PAY FOR EMPLOYEE DEVELOPMENT BALANCING WORK & LIFE: • O NOW A DAYS ARE CONCERNED WITH SIMULTANEOUSLY MEETING THE NEEDS OF BOTH WORK & FAMILY RESEARCH SUGGESTS THAT DUAL CAREER FAMILIES, SINGLE-PARENT FAMILIES, & FAMILIES WITH CHILDREN UNDER AGE FIVE ARE LIKELY TO EXPERIENCE THE MOST WORK & FAMILY CONFLICTS • BESIDES BALANCING WORK LIFE, O NOW A DAYS HAS PROVIDE SUPPORT SERVICES TO EMPLOYEES TO DEAL WITH STRESSES & STRAINS RELATED TO WORK & NON- WORK CONFLICTS • EMPLOYEES WITH DEPENDENTS STRUGGLE WITH CHILD CARE & ELDER CARE • ALL EMPLOYEES STRUGGLE WITH ISSUES RELATED TO PARTICIPATING IN NON-WORK ACTIVITIES THAT THEY INCREASINGLY HAVE LESS TIME FOR DUE TO WORK DEMANDS • TO ADDRESS THIS ISSUES, THE HR POLICIES HAVE TO BE RE-LOOKED, & CHANGED ACCORDINGLY TYPES OF WORK-LIFE CONFLICTS: • OUTCOMES ARE: o FRUSTRATION o HEALTH RISK o DECREASED PRODUCTIVITY o TARDINESS o TURNOVER o POOR MENTAL HEALTH • THREE TYPES OF WORK-FAMILY CONFLICT EXISTS: o TIME-BASED  OCCURS WHEN THE DEMANDS OF WORK & NON-WORK INTERFERE WITH EACH OTHER  EXAMPLE: TRAVEL, STAYING BACK ON OVERTIME o STRAIN-BASED  RESULTS FROM THE STRESS OF WORK & NON WORK ROLES
  • 64.  EXAMPLE: A NEW BORN BABY DEPRIVES PARENTS OF SLEEP; RESULT IT IS DIFFICULT TO CONCENTRATE AT WORK o BEHAVIOR-BASED  OCCURS WHEN EMPLOYEES BEHAVIOR IN WORK ROLES IS NOT APPROPRIATE FOR THEIR BEHAVIOR IN NON WORK ROLES  EXAMPLE: WORK DEMANDS THAT MANAGERS BE LOGICAL, IMPARTIAL, & AUTHORITARIAN. AT THE SAME TIME THESE MANAGERS ARE EXPECTED TO BE WARM, EMOTIONAL, & FRIENDLY IN THEIR RELATIONSHIPS WITH THEIR FAMILY MEMBERS OR FRIENDS O POLICIES TO ACCOMMODATE WORK & NON WORK: • COMMUNICATING INFORMATION ABOUT WORK & NON WORK POLICIES & JOB DEMANDS • FLEXIBILITY IN WORK ARRANGEMENTS & WORK SCHEDULES • SUPPORT SERVICES COPING WITH LOSS OF JOBS: • O THAT LAY OFF EMPLOYEES CAN EXPERIENCE LOWERED JOB COMMITMENT, DISTRUST OF MANAGEMENT & DIFFICULTIES RECRUITING NEW EMPLOYEES • JOB LOSS ALSO CAUSES STRESS & DISRUPTS THE PERSONAL LIVES OF LAID OFF EMPLOYEES • BECAUSE OF THE POTENTIAL DAMAGING EFFECTS OF DOWNSIZING, O SHOULD SEEK ALTERNATIVE WAYS TO REDUCE HEADCOUNT & LOWER LABOUR COSTS • JOB LOSS MAY BE INEVITABLE DUE TO MERGERS & ACQUISITION • FROM CAREER MANAGEMENT POINT OF VIEW, O MUST TAKE STEPS THAT REMAINING EMPLOYEES REMAIN PRODUCTIVE & COMMITTED TO THE O • TO REDUCE THE POTENTIAL NEGATIVE EFFECTS OF LAY OFF THE FOLLOWING THINGS AN O SHOULD DO: o ADVANCE WARNING & EXPLANATION FOR LAY OFF o PSYCHOLOGICAL, FINANCIAL & CAREER COUNSELING o ASSESSMENT OF SKILLS & INTEREST o PROVIDE ASSISTANCE IN FINDING ALTERNATIVE JOBS DEALING WITH OLDER EMPLOYEES: • FOLLOWING ACTIONS AN O CAN TAKE:
  • 65. o FLEXIBILITY IN SCHEDULING ALLOWS OLDER EMPLOYEES TO TAKE CARE OF SICK SPOUSES, GO BACK TO UPGRADE K / S, WORK FEW HOURS, o PROVIDE TRAINING TO AVOID OBSOLESCENCE & BE PREPARED TO USE NEW TECHNOLOGY o COUNSELING FOR FINDING NEW JOBS, & TRANSITION TO LESS SECURE POSITIONS PRE-RETIREMENT SOCIALIZATION: • PROCESS OF HELPING EMPLOYEES PREPARE FOR EXIST FROM WORK • IT ENCOURAGES EMPLOYEES TO LEARN ABOUT RETIREMENT LIFE, PLAN FOR ADEQUATE FINANCIAL, HOUSING, & HEALTH-CARE RESOURCES & FORM ACCURATE EXPECTATIONS ABOUT RETIREMENT • MANY O ALSO USE ALTERNATIVE WORK ARRANGEMENTS TO HELP EMPLOYEES MAKE THE TRANSITION INTO RETIREMENT WHILE AT THE SAME TIME CONTINUING TO UTILIZE THEIR TALENTS • ALTHOUGH FORMAL PRERETIREMENT SOCIALIZATION PROGRAMS ARE PRIMARILY FOR EMPLOYEES WHO ARE CONSIDERING RETIREMENT, FINANCIAL PLANNING, ESTATE PLANNING & PURCHASING INSURANCE NEEDS TO BE DONE MUCH EARLIER IN THEIR CAREER TO ENSURE THAT EMPLOYEES WILL HAVE THE FINANCIAL RESOURCES NECESSARY TO LIVE COMFORTABLY DURING RETIREMENT RETIREMENT: • INVOLVES LEAVING A JOB & WORK ROLE & MAKING A TRANSITION INTO A LIFE WITHOUT WORK • THE AGING WORK FORCE & THE USE OF EARLY RETIREMENT PROGRAMS TO SHRINK O WORK FORCES HAVE THREE IMPLICATIONS: o O MUST MEET THE NEEDS OF OLDER EMPLOYEES o O MUST TAKE STEPS TO PREPARE EMPLOYEES FOR RETIREMENT o O MUST BE CAREFUL THAT EARLY RETIREMENT PROGRAMS DO NOT UNFAIRLY DISCRIMINATE AGAINST OLDER EMPLOYEES EARLY RETIREMENT PROGRAMS: • OFFERS FINANCIAL BENEFITS TO LEAVE THE O
  • 66. • THESE PROGRAMS ARE USUALLY PART OF THE O’S STRATEGY TO REDUCE LABOUR COSTS WITHOUT HAVING TO LAY OFF THE EMPLOYEES • ELIGIBILITY FOR EARLY RETIREMENT IS USUALLY BASED ON AGE [40 YEARS] & YEARS OF SERVICE [10 YEARS] • EMPLOYEES ARE GIVEN COMPLETE INFORMATION ABOUT THE PLAN & THEY RECEIVE A REASONABLE AMOUNT OF TIME TO MAKE THEIR DECISIONS • EMPLOYEES DECISIONS ARE CONSIDERED VOLUNTARY, IF THEY REFUSE TO PARTICIPATE IN THE PLAN • O ORGANIZES TRAINING PROGRAMS ON HOW SAVE THE LUMPSUM AMOUNT SO THAT THEY GET MONTHLY INCOME • THE LUMP SUM AMOUNT ALSO QUALIFIES UPTO FIVE LAKHS INCOME TAX EXEMPTION • THE LUMP SUM AMOUNT IS OVER & THE OTHER RETIREMENT TERMINAL BENEFITS LIKE PF / GRATUITY / SUPERANNUATION 1.