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Identify and select Salary Structures that meets andcontributes to organization objectives across various functions Know How to Benchmark & Match Roles in yourcompany’s salary structure Know how to choose a Suitable Variable Pay Scheme andexamine their linkage to performance management Identifying Challenges/Pitfalls in salary structures andvariable pay scheme
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COMPETENCY-BASED SALARY + REWARD STRUCTURE
http://totallyunrelatedrandomanddebatable.blogspot.com/
STRUCTURETraining Session and Workshop
Kenny Ong
Intro
• Day Care Center
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HRM STRATEGY AND REWARD STRATEGY
Part A
The McPlaybook*
Make it easy to eat• 50% drive-thru• Meals held in one
hand
Make it easy to prepare• High Turnover• Tasks simple to learn
& repeat
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Make it quick• “Fast Food”• Tests new products
for Cooking Times
Make what customers want• Prowls market for new
products• Monitored field tests
*Adapted from: Businessweek , Februrary 5th 2007
Phases of Organisation Development
• Innovation• Enthusiastic
• Results orientation• Teamwork & Cooperation• Concern for order & quality
• New relationship building• Open to change• Efficiency & productivity oriented
Growth Phase
Organisation features
CurrentExploring and role
definition
Entrepreneurial Phase
People characteristics
Next PhaseManaging growth
Professional Development Phase
FutureManaging Efficiency and
Reengineering
Organisation Efficiency Phase
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• Flexibility• Quick decision making
• Pace setting and authoritative
• Attract capable individuals
• Flexibility
• Variable base salary & effectiveness related performance rewards
• High standards• Excellence• Commitment
• Systems thinking
• Coaching & developmental
• Reward results achieved
• Retain & motivate
• High to medium base salary & longer term performance related rewards
• Efficiency & productivity oriented
• Responsibility• Participatory
• Coaching & counseling
• Authoritative
• Cost efficiency• Consistency• Equity• Medium base salary and
efficiency performance rewards
characteristics
Organisation climate
Management style
Objectives of HR policies
The Changing Business Environment
• Recognizing global forces• Preparing a resilient and just
society• Searching for a new
relationship model with industry
• Free market, customer centered organization
• Leading economic change
• Creation of conditions for regional and international
• Industrial development
• Establishing government control
• Protecting free enterprise
• Domestic economic development
• Post colonial administration
• National development
• Establishing control over natural resources
• Establishing administration systems in the
• Post war• Reconstruction
Government objectives
Era
Development of the knowledge based economy1996 and on
going
Industrialization period1970-1995
Post Merdeka1957-1969
Pre-merdeka1945-1956
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• Attract, retain and motivate competent professionals
• Participative • BOD of professionals, team
decision making directed at achievement of targeted results
• International standards on corporate governance.
• Innovation• Global standards on
efficiency• Professional management
industry
• Flexible pay
• Authoritative• BOD led by
charismatic personalities
• Largely local principles on BOD conduct
• Production capacity utilization
• International market
international recognition
• Pay for loyalty –years of service
• Autocratic • BOD led by
individualistic style
• Import substitution • Domestic market
needs
development
• Pay practice “enough”
• BOD led by “home office” representative
• Home office standards
• Production for the colonial empire
systems in the interest of the British empire
Pay Philosophy
Corporate Leadership
Corporate culture
Budgeting vs. Priorities
Upturn Flat DownturnFight Complacency
Sharpen Edge
Innovation
Acquire
Sales
Cash Flow
Example: Business Situation vs. R&D Priorities
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Keep Momentum
Conquer
NPD Cycle Time
Improve Edge
Extensions
Counter Competitor
Acquire
Profits
Build momentum
Cash Flow
Focused on ‘Breakthrough’
JV, In-source, Out-source
Eliminate bottom 20%
Improve Top 15% revenue-generating products
↓ R&D, ↑Sales
Business Situations vs. HRM
Upturn Flat Downturn
Fight Complacency
Sharpen Edge
Keep Momentum
Innovation
Acquire
Profits
Sales
Cash Flow
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Keep Momentum
Conquer
‘Change’ mgmt
Reduce Fat
Continuity
Everyone Happy
Profits
Build momentum
Talent Mgmt
Innovation/R&D
Early wins
Slow Down HR Costs
Top Talent focus
Sales, Sales, Sales
Increase attrition
Motivation
Business Situations vs. HRM
Upturn Flat Downturn
Fight Complacency
Sharpen Edge
Keep Momentum
Innovation
Acquire
Profits
Sales
Cash Flow
•Projects•Job Ads•Communication•F/L Manager Com.•Middle Management
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Keep Momentum
Conquer
‘Change’ mgmt
Reduce Fat
Continuity
Everyone Happy
Profits
Build momentum
Talent Mgmt
Stack R&D
Early wins
Slow Down HR Costs
Top Talent focus
Stack Sales
Increase attrition
Motivation
•Middle Management•Involvement (survey, suggestions)•Realistic Goals•Controllable KPIs (customer satisfaction, production)
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THE BATTLE FOR TALENT Staff Attraction & Retention
Intro:
“Cow don’t drink water cannot push cow head down”
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push cow head down”
Question: Talent Management for Who?
Excellent
Very Good
Average
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Average
Not Good
Commit Suicide
Before we start…
1. Who designs your Talent Management programs?
2. Are you in the Talent Pool?3. Do you qualify?
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3. Do you qualify?4. “It takes a crook to catch a crook”
Talent Segmentation
• Who are your Talents?
G: A Talent for others does not
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G: A Talent for others does not mean a Talent for you
Talent Segment Targeting
• Unwanted by big MNCs• Small companies• Boring Environment• No Growth/Learning• No MBA
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• No MBA• Passion, Values, IQ (streetsmart)• Appreciate Chaos• Multitask• Passion to Learn
Talent Segmentation
Group I
(Talent Pool)
5
PE
RF
OR
MA
NC
E
2 3 4 5
POTENTIAL• Identify
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(Talent Pool)
23
4
PE
RF
OR
MA
NC
E
Talent Segmentation
Group I
(Talent Pool)
Group II
(é Potential)
2 3 4 5
5
PE
RF
OR
MA
NC
E
POTENTIAL• Identify
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(Talent Pool)(é Potential)
Group III
(é Performance)
Group IV
(Counseling)
23
4
PE
RF
OR
MA
NC
E
Selection and Identification
PERFORMANCE APPRAISAL
1. Results
2. Values
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2. Values
3. Special Contributions
Selection and Identification
POTENTIAL EVALUATION
1. Capacity
2. Competencies
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2. Competencies
3. Culture
Selection and Identification
POTENTIAL EVALUATION
1. Capacity
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Learn
Next Level
Ambition
Selection and Identification
POTENTIAL EVALUATION
2. Competencies
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Competent
Reliable/Consistent
Pressure
Selection and Identification
POTENTIAL EVALUATION
3. Culture
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Demonstrate
Improve
Influence
Exercise
Define ‘Performance’ Define ‘Potential’
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Exercise
• Exercise:1.Factors for Performance Appraisal2.Factors for Potential Appraisal
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Talent Scarcity and Brain-Drain Problem
1. Change your Business2. Change your Business Model3. Re-locate4. In-Source5. JV or Partnership or Swap
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5. JV or Partnership or Swap6. Create micro Business Units7. Over Promote8. Over Pay9. Contractual tie-up10.Hire Low, Train High
SALARY & BENEFITS: HOW IT
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SALARY & BENEFITS: HOW IT FITS INTO THE BIGGER SCHEME OF THINGS
Brand Execution: Aligning the 4-Wheels
Brand
PositionSegmentation
& Targeting
StructureResources
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Philosophies
& Targeting
Leadership
Person
Brand Alignment: Talent Segment Philosophies
Principles HR Philosophy
1.Equal / Fair
2.Happy / Productive
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3.Hire Low, Train High
4.Performance vs Potential
5.SP drives TM
6.Talent Pool owned by the company
7.Retention / Engagement
Brand Alignment: Demographics Segment Philosophies?
Principles HR Philosophy
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Alignment: Framework
• Org Structure• Job Design• C&B• Policies & procedures• Decision making
Structure
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• Decision making• Job fit• Management Systems• BSC and KPIs• Decentralized vs. Centralized • Control vs. Empower
Strategy: Framework
• Tools• Physical facilities• Peer support• Information
Resources
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• Information• T&D Programs• Mentors• Guides• ICT• OJT
Strategy: Framework
• Role modeling• Vision/Mission/Philosophy• Leadership Style
Leadership
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• Delegation & Empowerment• C&B• Promotions• Transition development
Strategy: Framework
• Recognition• Recruitment• Training• Values• Motivation
Person
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• Motivation• Self Efficacy• Awareness• Useful Competencies• Career aspirations• Attribution (control)
Alignment: 4-Wheels Model
Brand
PositionSegmentation
& Targeting
StructureResources
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Philosophies
& Targeting
Leadership
Person
• Exercise: Use the 4-wheels to determine corporate alignment needs
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Consulting Process and Deliverables
Step 1: Data
Turnover history & Exit Interviews
Turnover history & Exit Interviews
Training Program inputTraining Program input
Step 2: Analysis
Turnover AnalysisTurnover Analysis
Work Culture analysisWork Culture analysis
Step 3: Recommendations
Changes to HRM policies (inc. C&B)
Changes to HRM policies (inc. C&B)
Work Culture enhancementsWork Culture
enhancements
Step 4:Tools/Resources
Interview Formats and Questions for Recruitment
Interview Formats and Questions for Recruitment
Employee Satisfaction Survey
Employee Satisfaction Survey
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Employee Satisfaction Survey
Employee Satisfaction Survey
Q12 Staff Engagement Survey
Q12 Staff Engagement Survey
Stay SurveyStay Survey
Compensation & BenefitsCompensation & Benefits
Leadership analysisLeadership analysis
Compensation & Benefits analysis
Compensation & Benefits analysis
HRM policies analysisHRM policies analysis
Leadership and staff relationship mgmt
Leadership and staff relationship mgmt
Performance management system
Performance management system
Staff MotivationStaff Motivation
Q12 Staff Engagement Tools
Q12 Staff Engagement Tools
Benefits Survey formatBenefits Survey format
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SALARY & BENEFITSPart B
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OPTIMIZING COMPENSATION & BENEFITS
Background: The Four Desperates
1. Desperate Competition
2. Desperate Consumer
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3. Desperate Achievers
4. Desperate Changes
Refer: Analysis of Retention – Example and Exercise
• Exercise: Define your Talent issues, limited to the most critical 4 aspects.
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Principles and Objectives
Principles Company’s Needs
1.Succession Planning of Key Leaders –Founding Directors (perpetual business theory)
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Founding Directors (perpetual business theory)
2.Retention of Key Staff – especially younger ones
3.Transform into a Performance-based organization
Principles and Objectives
Principles HR Philosophy
1.Equal / Fair
2.Happy / Productive
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2.Happy / Productive
3.Hire Low, Train High
4.Performance vs Potential
5.Retention / Engagement
• Exercise: Define your Company-HRM Objectives and HRM Philosophies.
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What drives our Reward?
ValuesStrategy
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Compensation & Benefits
Before we proceed…
Reality #1
Cash is King
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Before we proceed…
Reality #2Tangible C&B
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Attraction
Before we proceed…
Reality #3In-Tangible C&B
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Retention
Before we proceed…
Reality #4In-Tangible C&B
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Tipping Point for Attraction/Retention
The 51.28% Theory
• Resign = Push + Pull > 51.28%• If staff is Happy:
=> 0 + Pull > 51.28%
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• Exercise: What “Values” drive your Talent Management strategies?
• How will these Values impact your HR and C&B policies?
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policies?
Branding and Positioning:
“You don’t attract who you want. You attract who you are”
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John Maxwell
What to Pay?
• Pay for Service• Pay for Job• Pay for Competency
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• Pay for Performance
Performance and Incentives
1. Internal Equity1. Internal Job Rates2. Performance differentials
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2. External Competitiveness1. External Job Rates - Benchmarking2. Demand & Supply
What’s the Difference?
• Increment
• Bonus
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• Promotion
Exercise: How does your company define the difference?
How to choose a durian
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Durian
Each
CompareCompareCompareCompare
How to choose a durian
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Each Other
Other stall
How do we compare?
•Skills / Knowledge
•Problems
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•Responsibility
•Competency- Knowledge
- Skills- Experience
•Problem solving- Complex
- Type of problems- Special Problems
Pay for Job
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- Special Problems
•Responsibility- Authority
- Success/Failure- Freedom to act
Job
Others
CompareCompareCompareCompare
Equity
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•Job Size
Others
Outside
What to Pay?
• Pay for Service• Pay for Job• Pay for Competency• Pay for Performance
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• Pay for Performance
Exercise: Which ones does your company use for Pay?
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Pay For SERVICE
“He has 20 years experience: 1 year of bad experience
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repeated 20 times”
Pay for SERVICE
• Loyalty (relevant years of service)This consideration may be rewarded in the following manner :-
Descriptions of performance Years in Position
Compa Ratio
Consistently 10 years of competent performance in the position
10 1.43-1.50
Consistently 9 years of competent performance in the position
9 1.36-1.42
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position
Consistently 8 years of competent performance in the position
8 1.29-1.35
Consistently 7 years of competent performance in the position
7 1.21-1.28
Consistently 6 years of competent performance in the position
6 1.13-1.20
Consistently 5 years of competent performance in the position
5 1.06-1.12
Consistently 4 years of competent performance in the position
4 1.00-1.05
Pay for SERVICE
• Seniority (career level on the professional career level)
We do not recommend that years of service(Seniority) in the organization be rewarded directly. Years of service must contribute to performance improvement or must lead to structural and content change of the position.
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change of the position.
In both cases the recognition can be systematically rewarded as explained earlier.
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Pay For JOB
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JOB DESIGNDocumentation
District Engineer, TNB
Duties and Responsibilities
If stated as Accountabilities then the job must produce :
Control, operate and maintain the District Distribution System
Ensure uninterrupted supply to consumers in the district by operating the District Distribution System.
Plan and design the High voltage system
Ensure availability of adequate supply for future needs of industries in the district by planning and designing the High voltage
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Manage major supply projects to customers in the district.
Ensure satisfaction of the major customersin the district by managing supply and Distribution.
Supervise all technical staff in the district.
Ensure high performance and Productivity of technical staff by adopting proper human resource management methods on selection, training, coaching, counselling and motivation.
voltage system planning and designing the High voltage System
Results Driven
Activity vs.
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Accountability
Exercise: Results Description
Key Result
Key Activities KPIs
1. 1.2.3.4.
1.2.3.4.
1. 1.
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2. 1.2.3.4.
1.2.3.4.
3. 1.2.3.4.
1.2.3.4.
4. 1.2.3.4.
1.2.3.4.
Key Results Major Supporting Actions Performance Indicators
1. Ensure achievement of targeted production volume
•By monitoring production performance and taking corrective actions•By analysing production downtime and introducing improvements•By thorough preparation for introduction and implementation of new models and variants
•Timely production targets•Productivity ratios•Downtime•Implementation schedule•
General Manager, Manufacturing
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2. Ensure achievement of product quality targets
•By reviewing quality performance results and identifying non conformance and undertaking corrective actions•By analysing customer feedback and taking corrective actions•By undertaking on-line and off-line continuous quality improvement programs and activities•By undertaking education and re-education programs
•Quality index•Defect occurrence•Non-conformance to established standards•Demerit points
Key Results Major Supporting Actions Performance Indicators
3. Ensure safe and healthy operating environment
•By incorporating safety and health features into infrastructure design and development•By creating awareness of safety and health among employees through programs and campaigns•By constant monitoring of safety and health standards through working committees•By developing and implementing
•Accident rate•Health standards•Operation audit findings
General Manager, Manufacturing
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•By developing and implementing occupational health programs
4. Ensure competent, motivated and productive manufacturing workforce
•By developing and implementing on-the-job training•By developing and promoting effective communication with employees and union•By ensuring continuous development and upgrading of skills•By providing appropriate recognition and rewards for high performance•By promoting teamwork through QCC and 5s activities
•Productivity ratios•Turnover rate•Employee morale•Team activities•Strikes / disciplinary actions
Key Results Major Supporting Actions Performance Indicators
5. Enhance operating efficiency and productivity
•By ensuring effective and efficient maintenance of plant, machinery and resources•By reducing wastage and eliminating pilferage•By reducing and managing indirect overtime•By managing utilisation of consumables and materials
•Operating efficiency standards•Cost per unit•Wastages and losses
General Manager, Manufacturing
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materials
6. Timely execution of projects
•By undertaking effective planning and provision of resources•By monitoring implementation and progress of projects•By managing project costs•By developing effective project teams
•Timely completion of projects within cost allocation
Salary Practice Analysis of Executive Director Positions
Market Base Salary Practice of Executive Directors
80,000
100,000
120,000
Monthly Base Salary (RM)
Q 3
Median
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y = 7333.3x - 53742
0
20,000
40,000
60,000
8 9 10 11 12 13 14 15 16 17Market Reference Job Grade
Monthly Base Salary (RM)
Median
Q 1
What is Market Reference Job Grade?
Market Reference Job Grade is an observed cluster of similar size jobs.
Why Market Reference Job Grade is Needed?
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Why Market Reference Job Grade is Needed?
Job comparison using job titles would be too rudimentary.
Directors are rewarded for responsibilities and accountabilities, therefore remuneration system must be closely linked to job size which
reflects the level of responsibilities and accountabilities.
8000
10000
12000
14000
Mon
thly
Bas
e S
alar
y(R
M)
Market Salary Practice Line
Determination of Market Salary Practice
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0
2000
4000
6000
8000
Market Reference Job Grade
Mon
thly
Bas
e S
alar
y(R
M)
Job Point Range
How Market Reference Job Grade is Determined ?
Job Descriptions Organisation Structure
Current Company Grading Structure
Business Complexity
Job evaluation
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Grading Structure
Revenue/Capital Employed (Company Size)
Financial Indicators (Company Size)
Complexityevaluation
Results
Competency
How job evaluation is conducted
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ResultsCreation
Problem Solving
The ranking methodThe ranking method
• Jobs are considered as a whole
• Reporting relationships or nature of functions or some discernible factors are applied
Chief Executive
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Production Manager
Finance ManagerSales Manager
Sales Executive
Production Executive
Accountants
The job classification methodThe job classification method
Whole jobs are grouped together on the basis that they seem to be equivalent in size.
Chief Executive
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Production Manager
Finance ManagerSales Manager
North
South
Centre
Production Mgr X
Production Mgr Y
Production Mgr Z
Planning, budgeting and project finance
Management accounting
The factor comparison methodWhat are relevant factors?
• Know-how- Skills
- Experience- Managerial skills-expertise
- Qualification
• Problem solving- Job complexity
- Freedom to think- Nature of problems
- Job challenges
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• Responsibility- Accountability
- Freedom to act- Limits of authority- Size of operation
The factor comparison method The factor comparison method -- continuedcontinued
Factors are measured by comparing one against the other.
Knowledge Responsibility Complexity
1098
A BA
B A
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87654321
B A
B
C C
C
A = 10 + 9 + 7 = 26B = 7 + 5 + 10 = 22C = 3 + 1 + 3 = 7
The point factor methodThe point factor method
• For each factor a scale is developed.
• The factors chosen are tested for reliability and validity.
The fundamental job factors are :-
–Know-how
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–Know-how
–Problem solving
–Accountability (for results creation)
ResultsCreation
Competency
Problem Solving
Point Factor Method Point Factor Method --Job EvaluationJob Evaluation
• Job Evaluation is a system for rating jobs logically and fairly
• Weber’s Law states that job measurement can be achieved up to an accuracy level of 15%
• The number pattern used for measurement of jobs is a
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• The number pattern used for measurement of jobs is a 15% gap scale, i.e.
57 66 76 87 100 115 132 152 175 200
Most Consultants use these universally accepted job measurement principles
Job Factor : Competencies
• Competency includes every kind of capability, skill and ability that is necessary to produce the key results of the job at an acceptable level.
• It does not matter whether the competency is acquired by
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• It does not matter whether the competency is acquired by formal training in an institute of higher learning or by working on the job and becoming capable through experience
• Competencies can be expressed either by depth(specialization) or breadth(generalization)
Levels of Competency211218401600
Level 11
Exceptional MasteryUnique mastery in a scientific discipline or professional mastery of organisational and institutional systems.
140012161056
Level 10
Recognised AuthorityProfessional MasteryRecognised authority outside one’s organisation in a particular field or mastery of integrative mechanism in a broad area.
920800700
Level 9
Professional Mastery / SpecialistKnow-how at a high levelAn authoritative source of knowledge within the organisation. These jobs require accumulated know-how through extensive experience in a particular field of study. Alternatively, these jobs require broad practical knowledge of a variety of concepts and models necessary to engage in goal directed effort involving complex problem situations.
608528460
Level 8
Seasoned Professional level of know-howJobs requiring specialist know-how that can be obtained only by years of experience in the relevant field of knowledge. These jobs require extensive experience in having used concepts covering a broad area of knowledge in order to resolve problems.
400350304
Level 7
Senior Professional level of know-howAt this level jobs require extensive knowledge covering multiple levels of principles and theoretical models in a particular field or functional areas..
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264230200
Level 6
Professional level of know-howThis category of know-how ranges from knowledge of principles and concepts to operational knowledge of application of principles and concepts.
175152132
Level 5
Basic Principles and Theoretical Models (Junior Professional)Jobs at this level require knowledge of basic principles and theoretical model that is normally gained through formal study.
11510087
Level 4
Sub-Professional know-howThis is the know-how level of sub-professionals. Usually 2 - 3 years of study beyond basic schooling is necessary to acquire the competencies involving the required concepts and theoretical principles. Alternatively this level is characterised by several years of working experience to resolve problems
766657
Level 3
Vocational SkillsThis category of know-how is usually referred to as vocational skills. Jobs at this level require procedural knowledge which is provided by either job experience or through vocational training.
504338
Level 2
ProceduresJobs at this level require knowledge of work routine and experience in using simple tools, equipment and machines.
332925
Level 1
Basic EducationThe lowest level of know-how which is largely basic education and on the job instruction of work routines.
Job Factor : Problem Solving Explanation
Problem solving is the application of knowledge required to identify and resolve problems.
There are essentially two dimensions to problem situations :-
1. the extent to which the problem situation is covered by set procedures, established standards, company policies and principles and
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procedures, established standards, company policies and principles and more generally by guidelines and goals orientation.
2. the extent to which the job encounters similar problem situation, differing situations or situations requiring constructive thinking, evaluative judgement or situations requiring the development of new concepts and generalisation.
Levels of Problem Solving
528460400
Level 9Strategic Direction
This is the highest level where the job holder is free to engage in any form of problem solving constrained only by the general rules ofconduct, cultural norms and business philosophy . Jobs of this nature are usually engaged in adaptive thinking of a very high leveand in applyingnew and imaginative approaches .
350304264
Level 8Broad Policy Development
This level of jobs engage in problem solving situations with the aim of achieving ultimate goals. The job holders are concerned about achieving goal direction, and they are guided by the operating philosophy . A large part of these jobs involve adaptive thinking of ahigh order.
230200175
Level 7Broad Policy Implementation
These jobs are guided by broad policies . However, the problem solving is directed at achieving specific objectives by adaptive thinkinThe “What” and “How” i.e. problem definition has to be worked out.
152132115
Level 6Defined Policy
This level of jobs are guided in problem solving by clearly defined principles and available policies . The nature of problems encountered are such that the “what is” is clear, and a certain degree of adaptive thinking is required to determine solutions.
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115 encountered are such that the “what is” is clear, and a certain degree of adaptive thinking is required to determine solutions.1008776
Level 5Principles
These jobs engage in problem solving based largely on standards available or principles set . Where procedures are available, they are usually unspecified allowing discretion. The nature of the problems encountered are usually resolved by applying learned solutionsre very little deductive and extrapolate thinking is required.
665750
Level 4Process / Standards
These jobs solve problems by the application of procedures and precedents . The nature of the problem presents issues that require onto search for the answer from among several known alternatives.
433329
Level 3Strict Standards
These jobs solve problems by the application of procedures and precedents . The nature of the problem is specific and one has to choobetween defined solution alternatives.
252219
Level 2Procedures
This level of jobs are usually “told” how to solve their problems and they resolve problem situations working with standard instruction
161412
Level 1Routines
These jobs follow detailed instructions and strict rules of conduct . The job holder is likely to be resolving problems engaged in repetitive reaction to problem situations where one has to choose from a given set of solutions.
Job Factor : Results Creation Explanation
This is the element of the job that can be best described as “the accountability for actions and for the consequence of actions taken”.
The more freedom there is in the job to take actions and the more impactthe job has on end results the greater the Results creation element.
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the job has on end results the greater the Results creation element.
For example, the job of a General Manager of a business unit can beconsidered as having more impact on end results than the job of aDepartment Manager of the business unit.
Levels of Results Creation
1056920800
Level 9Strategic Direction
Visionary.
700608528
Level 8Broad Policy Development
Very general guidance from the highest level of the enterprise or organisation. These jobs have a higimpact on end results.
460400350
Level 7Broad Policy Implementation
These jobs are subject to broad policies and there are general guidelines from the highest level of the enterprise or organisation
304264230
Level 6Defined Policy
At this level of Freedom to act, the jobs are subject to functional policies and goals.
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200175152
Level 5Principles
This level of jobs are subject to specific policies and theyare also subject to general practice of the functional area.
132115100
Level 4Process / Standards
These jobs are subject to well defined policies and procedures . Results produced are subject to review by Superior.
877666
Level 3Strict Standards
These jobs are subject tostandardised work practices and procedures. Generally supervision over performance is by close review of progress and results.
575043
Level 2Procedures
These jobs are supervised closely byinstruction and prescription of work routine.
383329
Level 1Routines
This level of jobs are subject to detailed work routines and there is little or no room for change.
1425409209700109209+Executive 1
No Job Title Results Creation
Problem Solving
Competency Total Job
Points
Job Grade
Level Points Level Points Level Points
Job Evaluation Results
The positions of Executive Chairman and Executive Directors were evaluated based on the Role and Accountabilities as designed by Consultants
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1425409209700109209+Executive Chairman
1
12148652883508+6088Executive Directors
2
No. Positions/Company Grade
CompetencyProblem
SolvingResult Creation
TotalPoints
Mkt. RefGradeLeve
lPoints Level Points Level Points
1. Executive Chairman 9+ 920 10 700 9 920 2540 14
2. Executive Director 8 528 8+ 350 8 608 1486 12
3 Executive Director 8 528 8+ 350 8 608 1486 12
4 Non Executive Directors 8 528 8 304 7+ 460 1292 11
5 GM, Asia Pacific Centre Sdn Bhd 7 350 7+ 230 6 264 844 9
6 GM, Marketing 7 350 7+ 230 6 264 844 9
7 GM, Technical & Quality Assurance 7 350 7+ 230 6 264 844 9
Job Evaluation Results
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7 GM, Technical & Quality Assurance 7 350 7+ 230 6 264 844 9
8 GM, (Sepang) Sdn Bhd 7 350 7+ 230 6 264 844 9
9 GM, (Niaga) Sdn Bhd 7 350 7+ 230 6 264 844 9
10 GM, Security Services 7- 304 7 200 6 264 768 8
11 GM, General Ops 7- 304 7 200 6 264 768 8
12 GM, Corporate Communications 7- 304 7 200 6 264 768 8
13 GM, (Technologies) Sdn Bhd 7- 304 7 200 6 264 768 8
14GM, Agriculture-Horticulture SdnBhd
7- 304 7 200 6 264 768 8
15 GM, Human Resource 7- 304 7 200 6 264 768 8
16GM, Sports UnitSdnBhd
7- 304 7 200 6 264 768 8
17GM, Mgmt & Technical Services Sdn Bhd
7- 304 7 200 6 264 768 8
18 GM, Public Relations 7- 304 7 200 6 264 768 8
Market Salary ScaleJob
PointsMkt Ref
GradeGeneral
CompetenciesProblem Solving
Freedom to Act for Results
General Market
Q 1 Med Q3
4201-above
16o Ultimate integration through the provision of enterprise philosophies
Philosophical and strategic integration of very large multibusiness global enterprise
Achievement of enterprise philosophy objectives
62,100 69,200 88,600
3301-4200 15
o Business integration of global enterprise
Guiding strategic integration of very large multibusiness global enterprise
Achievement of enterprise goals and philosophy objectives
50,600 56,600 71,900
2501-3300
14 o Business integration of very large multibusiness enterprise
Guiding strategic integration of complex very large multibusiness
Achievement of enterprise objectives and goals
41,300 46,200 58,400
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group
1801-2500
13 o Enterprise integration and multibusiness sector leadership
Guiding strategic integration of complex issues large multibusiness unit(s)
Achievement of enterprise business objectives and business goals
33,600 37,800 47,400
1481-1800
12 o Strategic integration of the enterprise
Managing strategic integration issues of large business unit(s)
Achievement of longer term enterprise goals
27,400 30,900 38,500
1181-1480
11 o Strategic integration of the operations of large business unit of several units
Resolving strategic integration issues and creating conditions for cross functional cooperation.
Achievement of business objectives and strategies
22,400 25,200 31,300
941-
1180
10
JJob subject to broad goals & broad policies Involved in determining key results to be achieved by the organization both long term and strategic results
Strategic business management capability or comprehensive integration of large but relatively homogenous business units
Management of conceptual direction and achievement of goals and business objectives within very broad guidelines and resource constraints
18,200 20,600 25,400
Grade
22
21
20
19
Head of Business Area
Results Creation (Freedom to Act)
Problem Solving
Competency
528
460
400
350304
264
350
304
264
230200
175
608
528
460
400350
304Sr. Mgr. Sr. Mgr.
Customer 18
17
16
Sr. Mgr. HR & Admin
Sr. Mgr, Training
Snr. Mgr. Dist.
Job grade as it should be Evaluated new grade
264
230
200
175
152
132
304
264
230
Sr. Mgr. Service
Sr. Mgr. Sales
Sr. Mgr. Product
A
Customer Serv. & Quality
Alternative to Job Evaluation
1. Obtain Consultant’s report2. Match internal jobs (+salaries, between 2-5 yrs
in the job) to Consultant Report’s Grades and Points System using Mid-Point salary as the reference point
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reference point1. E.g.: Admin Executive, RM2,300 -> Grade 3, Mid-
Point (450 points); assign 450 points2. Benchmark about 20%-30% of the jobs
3. Cluster or Slot remaining 70% of jobs according to Grading Scale based roughly on 3 factors:
1. Competency, Problem Solving, Results Creation
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Pay For PERFORMANCE
Behavior-based
Knowledge/Skill based
Trait-based
Which system should we use?
Refer: Which Performance
Management System should we use?
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Results-based
Managing Performance = Managing Expectations
What’s YOUR expectation?
Activity based
Compa Ratio Table
Use this if your company: • Pays for Performance, and • Pays for Job rates
Def:
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Def:Mid-Point = Mid Point of Pay Grade
Grade E2
Min RM2,000
MID RM2,500
Max RM3,000
Compa Ratio Analysis – An Indicator of Salary Position
Compa Ratio (CR) =
Actual Salary ÷ Mid-Point Salary of the Salary Range
75th Percentile
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Sal
ary
(RM
)
Job Points
75th Percentile
CR = 1.00
CR = 1.30
CR = 0.70
Incumbent Mkt Reference Job Grade
Mid Point Salary for the Market Job
Grade
Current Monthly
Base Salary
Compa Ratio
ABC 2 RM2,6000
RM2,600
1.00
Incumbents’ Salary Analysis
Incumbents’ monthly base salaries compared with mid-point salary of the recommended salary range :-
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Hj XYZ 2 RM2,600
RM2,750
1.05
GHI 2 RM2,600
RM2,400
0.75
This job grade represents the measured “job size”based on current job accountabilities
Compa Ratio Table
< 0.7 ≥0.7 -≤0.9
>0.9 -<1.1
≥1.1 -≤1.3
> 1.3
5
4
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3
2
1
Compa Ratio Table
< 0.7 ≥0.7 -≤0.9
>0.9 -<1.1
≥1.1 -≤1.3
> 1.3
5
4
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3 5%
2
1
Compa Ratio Table
< 0.7 ≥0.7 -≤0.9
>0.9 -<1.1
≥1.1 -≤1.3
> 1.3
5 9
4 7
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3 9 7 5% 4 3
2 2
1 0
Compa Ratio Table
< 0.7 ≥0.7 -≤0.9
>0.9 -<1.1
≥1.1 -≤1.3
> 1.3
5 15 12 9 8 7
4 12 9 7 5 3
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3 9 7 5% 4 3
2 6 4 2 1 0
1 4 2 0 0 0
• Exercise:• Determine your pay grades and salary points
(internal or external benchmark?)• Draw your Compa Ratio Table
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Employee Distinction?
< 0.7 ≥0.7 -≤0.9
>0.9 -<1.1
≥1.1 -≤1.3
> 1.3
5 9 8 7 6 5
4 8 7 6 5 4
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3 7 6 5% 4 3
2 6 5 4 3 2
1 5 4 3 2 1
Employee Distinction?
< 0.7 ≥0.7 -≤0.9
>0.9 -<1.1
≥1.1 -≤1.3
> 1.3
5 20 15 12 8 5
4 18 12 9 5 3
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3 9 7 5% 4 3
2 1 1 1 0 0
1 0 0 0 0 0
Employee Distinction
Average Rating
Rating Multiply Factor
Example Rating
Example Increme
nt
> 4.1 5 2 4.2 8.4%
> 3.3 – 4.1 4 1.2 3.5 4.2%
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> 2.3 – 3.3 3 0.75 2.8 2.1%
> 1.3 – 2.3 2 0.5 1.8 0.9%
≤ 1.3 1 0 1.0 0%
Job Holder’s Salary Determination Model
Performance Rating
Descriptions
Rating
Distinguished 5
Commendable 4
Competent 3
Adequate 2
Step 1Descriptions of
performanceYears in Position
Salary Range
Consistently 8 years of competent performance in the position
8 32,756 –33,740
Consistently 7 years of competent performance in the position
7 31,801 –32,755
Step 2Personal
Contribution Level
Rating Recognition (%
increment)
Unique AuthorityThe individual is a recognised industry leader
3 10%
Step 3
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Adequate 2
Entry zone / unsatisfactory
1
Consistently 6 years of competent performance in the position
6 30,876 –31,800
Consistently 5 years of competent performance in the position
5 29,976 –30,875
Consistently 4 years of competent performance in the position
4 29,101 –29,975
Consistently 3 years of competent performance in the position
3 26,000 –29,100
industry leader in the field.
SignificantThe individual brings market-recognised characteristics to the job.
2 5%
Insignificant 1 0%
Job Holder’s Salary Determination
The significant compensable elements of the three incumbents are linked below showing the related salary decision :-
Incumbent Mkt Ref. Job Grade
Current Monthly Base Salary
Mid Point Salary
ABC 11 RM RM
New
Salary
(RM)
New
Compa
Ratio
27,500 1.05
Incumbent’s Performance
RatingCurrent Sal. CR
3 1.05
Step 1
26,000 –
Yrs in Pst’n
Loyalty
Min Sal.Level
3
Step 2
%Increase
PersonalCharacteristics
Level
0%
Step 3
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ABC 11 RM27,500
RM26,000
XYZ 11 RM27,500
RM26,000
DEF 11 RM27,500
RM26,000
27,500
28,875
27,500
1.05
1.11
1.05
3
3
3
1.05
1.05
1.05
26,000 –29,100 (current salary already within
the range)
26,000 –29,100 (current salary already within
the range)
26,000 –29,100 (current salary already within
the range)
3
3
3
1
2
1
0%
5%
0%
Employee Distinction
Group I
(Talent Pool)
Group II
(é Potential)
2 3 4 5
5
PE
RF
OR
MA
NC
E
POTENTIAL• Identify
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(Talent Pool)(é Potential)
Group III
(é Performance)
Group IV
(Counseling)
23
4
PE
RF
OR
MA
NC
E
Curse of the Bell Curve
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‘A’ Staff
‘B’ Staff
‘D’ Staff
‘E’ Staff
‘C’ Staff
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Pay For COMPETENCIES
Position: SecretaryResponsibilities + Tasks + Activities
Personal Competencies Differentiating Competencies
•Typing•Manages communications•Keeps short-hand notes•Makes appointments
•Pleasant•Accurate•Is able to take notes on shorthand and typing memo effectively•Presentable
•Appearance
•Proactive•Initiative•Independent•Integrity (trust)•Creative•Resourcefulness•Always excel
http://totallyunrelatedrandomanddebatable.blogspot.com/The Job Person Characteristics The Superior Performer
appointments•Uses the computer•Filing•Takes minutes•Follow-up•Makes coffee•Keeps secrets•Drafts letter•Screens calls
•Behaviours•Good manners•Courteous•Diligent
•Unwavering dedication and commitment•Ability to make simple decisions•Sensitive to people•Positive attitude
Competencies
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The appointment of a Senior Manager - an illustration
Selection criteria of the past
MBA
10 yrs work experience
I am an expert
I have to gain
Present Selection Criteria
Selection Criteria for the Future
MBA
10 yrs work experience
I am able to help others in doing things right
I enjoy contributing as a
MBA
Less than10 yrs work experience
I can get others to agree on what is right
I enjoy having to get
Knowledge
Skills
Self Concept
http://totallyunrelatedrandomanddebatable.blogspot.com/This model provides clarity on job related competencies.This model provides clarity on job related competencies.
I have to gain respect of others
Aggressive or submissive
• Personal Aggrandizement
• Excessive use of position power (status & authority)
I enjoy contributing as a team player to what is right
Positive and proactive
•Achievement & social power
•Use of technical knowledge & power of persuasion
I enjoy having to get others to determine what is right
Positive, enthusiastic and proactive
Resourceful power (persuasion, influencing, reasoning, concern for personal impact)
Social Role
Traits
Motive
Skills & Knowledge
Social Role
Job vs Person Match: District Engineer
Mr. AMr. A Ms. BMs. BM.Eng.10 years as an engineer in Tech.Jobs.
M.Eng.10 years as an engineer in Tech.jobs
I like to help my I’ll help if I am
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Social Role
Self Concept
Traits
Motive
team achieve.
I like to learn new things
Proactive
I want to do better
asked
I am an expert
Aggressive
I told them what is right
Skills & Knowledge
Social Role
Job vs Person Match: Room Sales person
Ms. AMs. A Ms. BMs. BDiploma in Social Sc. 5 years as an Admin.clerk
Diploma in Social Sc. 5 years as as waitress
in a hotel
I like to meet I don’t like
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Social Role
Self Concept
Traits
Motive
new people
I like to learn new things
Assertive
I want to do better
I don’t like injustice
I am always unlucky
Aggressive
I told them what is - right
Superstar Competency Model
• Exercise: Develop Your Own “Superstar” Competency Model
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Competency Target Setting
1. Initiative2. Teamwork3. Problem Solving4. Leadership5. Integrity
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5. Integrity
What’s the problem here?
Competency Target Setting
Initiative1. Minimize problems quickly without needing to
be asked2. Seeks personal growth and professional self-
development
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development3. Doing more than is required/expected in a job4. Seeks new and improved solutions and
approaches to completing assignments 5. Looks for opportunities to help others and team
• Exercise: Competency Dictionary
• (Refer to Workbook for examples)
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Competency Standards
3 Meets behavioral standards consistently. Is a good role model for others.
2 Meets behavioral standards some of the time. Needs improvement.
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time. Needs improvement.
1 Does not meet behavioral standards. Require counseling or disciplinary actions.
Exercise: Competency Standards
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• The Specialist Career Ladder
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Career Management
A professional of the past The new career professional
Where is my job
GM
Manager ManagerSeasoned Professional
I need an interesting career
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Asst Mgr Asst Mgr
Executive
Senior Professional
Developing Professional
Developmental Executive
SCL: Specialist Career Ladder
Consultant (4)
Principal Consultant (1)
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Associate Specialist (2)
Specialist (4)
SCL: Specialist Career Ladder
•Telco, •Outsourcing, •Aerospace, •Biotech,
Consultant (4)
Principal Consultant (1)
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•Digital media, •Animation,•M&A•Financial forensicsAssociate Specialist (2)
Specialist (4)
SCL: Specialist Career Ladder
General incentives & privileges:a. Extra monetary incentiveb. Official Specialist / Consultant job title.
General qualifying/re-qualifying criteria:a. Meet the competency criteriab. Performance min B, PEDc. Min. 40 training hr/year
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c. Higher external training subsidy limit by company.d. Tie-pin or pine. Certificatef. Additional benefits
c. Min. 40 training hr/yeard. Physical contribution:i Mentoringii Write-upiii Speakingiv Multimedia recordingv R&D publication / Thesis
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SALARY STRUCTURES AND SALARY SURVEYS
Part B-2
• Refer to Benchmarking and Surveys (Workbook)
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Options to Develop Salary Structure
1. Self – using JE System1. -> match Job Points ranges to Consultant’s scale2. Better internal equity, not externally competitive
2. Adopt Consultant’s structure
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2. Adopt Consultant’s structure 1. -> match internal jobs to new structure2. Bad internal equity, externally competitive
Salary Structures
1. Narrow Band – 40%-60% between min/max2. Broad Band– 100%-200% between min/max3. Specialist Ladder
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Broad Band
Pros
1. Streamlines Hierarchy2. Facilitates Internal
Movement3. Managers have greater
latitude to pay what they
Cons
1. No Awareness of External Market Rates
2. May Lead to Inequities3. Lack of Cost Controls4. Severe reduction in
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latitude to pay what they want to an employee
4. Severe reduction in opportunities for promotions
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VARIABLE AND INCENTIVE SCHEMES
Part B-3
Incentive Scheme Design
Agenda
1. Objective
2. Situation Analysis
3. Target Areas to be improved
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4. Current Incentive
5. Recommended KPIs
6. Proposed Incentive Scheme
7. Improving Performance
Objective?
1. What are you trying to achieve?
2. How to measure?
3. What is the Gap?
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Target group?
The following positions are eligible to participate in this scheme:
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Situation Analysis?
1. Retention?
2. Working environment?
3. The current basic pay?
4. Teamwork?
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4. Teamwork?
5. Supervision/Leadership style?
6. Attitude?
7. Turnover issues?
8. Absenteeism?
Target areas to be improved?
1. Increase/Decrease the basic pay?
2. Fixed costs?
3. Incentives tied to… ??
4. Absenteeism?
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4. Absenteeism?
5. Quality improvement?
6. Easily understood by employee?
Current incentives?
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Recommended KPIs to be incentivised
Output Skill (Proficiency) Behavioural (Attitude)
•Manpower productivity •Operational Cost•Safety and Environment
•Job Specific Skills •Punctuality•Absenteeism/Attendance•Teamwork
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•Quality (e.g. Defect/unit)•Volume
•Turnover
Proposed incentive scheme
1. Fixed Salary Proportion (Fixed Personal Income, Variable Team Bonus)
Total Payout
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Total Payout
= Fixed Quantum + Team Based Bonus
Example:
1. Budgeted incentive = 5.8 months of basic payroll
2. Fixed Quantum = 0.4 months (for example) [4.8 mths ÷12]
3. Monthly Total Payout = Basic Pay + Fixed Quantum
Proposed incentive scheme
1. Fixed Salary Proportion (Fixed Personal Income, Variable Team Bonus)
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3. Monthly Total Payout = Basic Pay + Fixed Quantum
= RM500 + 0.4 months
= RM500 + RM200
= RM700
4. Amount available for bonus = 5.8 months - 4.8 months
= 1.0 month
Team Performance
Production Operator Team Leader Group Leader
Annual Bonus Incentive Matrix
Proposed incentive scheme
1. Fixed Salary Proportion (Fixed Personal Income, Variable Team Bonus)
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Performance Rating
5 1.50 months 2.00 months 2.50 months
4 1.25 months 1.75 months 2.25 months
3 1.00 months 1.50 months 2.00 months
2 0.75 months 1.25 months 1.75 months
1 0.00 months 0.00 months 0.00 months
Annual Bonus Annual Bonus Annual Bonus
Monthly Incentive Payout Matrix
Proposed incentive scheme
2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus)
Total Payout =
Basic Pay + Monthly Personal Target Achievement + (Personal Target Achievement x Team Performance Multiplier)
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Personal Rating
5 1.2 months
4 1.0 months
3 0.8 months
2 0.5 months
1 0.0 months
Monthly Incentive
Proposed incentive scheme
2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus)
Monthly Basic Pay (RM)
Example: Production Operator
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Personal Performance
Rating 500 550 600 650 700 750 800
5 1,100 1,210 1,320 1,430 1,540 1,650 1,760
4 1,000 1,100 1,200 1,300 1,400 1,500 1,600
3 900 990 1,080 1,170 1,260 1,350 1,440
2 750 825 900 975 1,050 1,125 1,200
1 500 550 600 650 700 750 800
Monthly Basic Pay (RM)
Proposed incentive scheme
2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus)
Team Leader Group LeaderProduction Operator
Annual Bonus Incentive Matrix
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Personal Rating
5 1.2 months 1.70 months 2.20 months
4 1.0 months 1.50 months 2.00 months
3 0.8 months 1.30 months 1.80 months
2 0.5 months 1.00 months 1.50 months
1 0.0 months 0.00 months 0.00 months
Monthly Incentive Monthly Incentive Monthly Incentive
5 4 3 2 1Team Performance
Annual Bonus Incentive Matrix
(in months)
Proposed incentive scheme
2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus)
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5 4 3 2 1
5 2.4 1.8 1.2 0.6 0
4 2 1.5 1 0.5 0
3 1.6 1.2 0.8 0.4 0
2 1 0.75 0.5 0.25 0
1 0 0 0 0 0Per
son
al P
erfo
rman
ce
Proposed incentive scheme
3. Team Ratio Plan (Team-based Income, No Annual Bonus)
Total Payout =
Basic Pay + Monthly Incentive Payout (No Annual Bonus)
Production Staff Team Leader Group LeaderMonthly Incentive Payout Matrix
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Team Rating
5 2.00 months 2.25 months 2.50 months
4 1.50 months 1.75 months 2.00 months
3 1.20 months 1.45 months 1.70 months
2 0.75 months 1.00 months 1.25 months
1 0.00 months 0.00 months 0.00 months
Production Staff Team Leader Group LeaderMonthly Incentive Monthly IncentiveMonthly Incentive
Monthly Incentive Payout Matrix
Team Monthly Basic Pay (RM)
Example: Production Operator
Proposed incentive scheme
3. Team Ratio Plan (Team-based Income, No Annual Bonus)
http://totallyunrelatedrandomanddebatable.blogspot.com/
Team Performance
Rating 500 550 600 650 700 750 800
5 1,500 1,650 1,800 1,950 2,100 2,250 2,400
4 1,250 1,375 1,500 1,625 1,750 1,875 2,000
3 1,100 1,210 1,320 1,430 1,540 1,650 1,760
2 875 963 1,050 1,138 1,225 1,313 1,400
1 500 550 600 650 700 750 800
Improving PerformancePerformance Improvement Area
Intervention Methods Effectiveness of Direct Incentive Measures
Skill Deficiency •Off site Training•Job redesign•On-the-job training•Process Redesign
Yes
Performance Punishing •Review performance management processes•Study on supervision style of Team Leader•Remove punishment
No
Non-performance •Proper performance monitoring NoNon-performance rewarding
•Proper performance monitoring process•Arrange positive consequence
No
Coordination & Teamwork
•Communication of clear direction and goals•Shared Accountabilities•Focus on Team Competencies
Partly
Behavioural •Communication of clear behavioural indicators•Focus on Behavioural•Coaching and Counselling
Partly
Supervision Style •Leadership styles of team leaders•Regular tracking on morale of team members
Yes but not for team members
• Refer Sales incentive design examples
http://totallyunrelatedrandomanddebatable.blogspot.com/
Dangers of Direct Incentives
1. lessen internal motivation, 2. switch to mercenary mode, 3. do something and do not do something else, 4. bribe and fraud culture, 5. easier for competitors to recruit,
http://totallyunrelatedrandomanddebatable.blogspot.com/
5. easier for competitors to recruit, 6. lessen teamwork & helpful culture, 7. less and less impact for same value, 8. mockery of base salary and employment
contract, 9. rebellion from non-incentivised staff, 10.end up incentivising everyone for everything?,
Non-Monetary Rewardsand Benefits
http://totallyunrelatedrandomanddebatable.blogspot.com/
and Benefits
Reminder…
Reality #1
Cash is King
http://totallyunrelatedrandomanddebatable.blogspot.com/
Reminder …
Reality #2Tangible C&B
http://totallyunrelatedrandomanddebatable.blogspot.com/
Attraction
Reminder …
Reality #3In-Tangible C&B
http://totallyunrelatedrandomanddebatable.blogspot.com/
Retention
Reminder …
Reality #4In-Tangible C&B
http://totallyunrelatedrandomanddebatable.blogspot.com/
Tipping Point for Attraction/Retention
Benefits Analysis and Comparison
http://totallyunrelatedrandomanddebatable.blogspot.com/
Total Remuneration Composition
45% 6% 49%12 - 16
Market Reference Job Grade
Total Remuneration Composition for Executive Director & Executive Chairman Average Annual Total Remuneration
Value (RM)
RM 1,016,000
http://totallyunrelatedrandomanddebatable.blogspot.com/
46% 12% 42%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percentage
10 - 11
Market Reference Job Grade
Base Salary Fixed Cash Allowance Benefits-in-kind
RM 535,000
• Refer Benefits comparison Table
http://totallyunrelatedrandomanddebatable.blogspot.com/
Market Practice on Fixed Cash Allowance for Executive Director and Executive Chairman
38%
23%
15%
31%
54%
Housing Allowance
Attendant Allowance
Board Allowance
Director Fees
Contractual/Regular Bonus
54
32
1
These Board of Directors related Allowances/Fees are not a common practice among the Companies as Base Salary is provided.
Fixed Cash Allowances
http://totallyunrelatedrandomanddebatable.blogspot.com/
15%
8%
15%
23%
38%
0% 10% 20% 30% 40% 50% 60%
Other Allowances
Cost of Living Allowance
Entertainment Allowance
Transport Allowance
Housing Allowance
98
76
5
% of Companies
Benefits-in-Kind
Benefits-in-kind Practice for Executive Director and Executive Chairman Positions
80%
100%
20%
30%
70%
16%
98%
Group Personal Accident InsuranceMedical benefits
GratuityRetirement SchemeAdditional EPF
Stock Option/Profit SharingIncrement
76
54
32
1
http://totallyunrelatedrandomanddebatable.blogspot.com/
98%
100%
25%
100%
35%
15%
30%
20%
70%
80%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Leave Passage Club Membership
Car LoanCompany Car Housing LoanBody GuardsDomestic help
Company HouseGroup Life Insurance
Group Personal Accident Insurance
1615
1413
1211
109
8
The 51.28% Theory
• Resign = Push + Pull > 51.28%• If staff is Happy:
=> 0 + Pull > 51.28%
http://totallyunrelatedrandomanddebatable.blogspot.com/
Retention
Retention
Experience Swing Ex
http://totallyunrelatedrandomanddebatable.blogspot.com/
Experience Swing Ex
Oppose
Retention 1: Experience
Loyalty = Experience vs. Expectations
http://totallyunrelatedrandomanddebatable.blogspot.com/
Solution Strategy: Talent Management Plan
Loyalty 1: Experience• Talent
Management Plan
Philosophy
P/P Grid, SP Table, PDP, Premium,
P/P Grid, Q12, PA, SDP, SP
Selection
http://totallyunrelatedrandomanddebatable.blogspot.com/
PhilosophyOJT, Mentoring, Big-5, LP, PDP, SDP, Projects,
Q12, C&B, ACDP, SCL, Transfers, Events, Recognition
PA, SDP, SPDevelopment
Motivation
Evaluation
Loyalty 2: Swing
Loyalty = Best alternative at the current moment until I find another alternative
http://totallyunrelatedrandomanddebatable.blogspot.com/
Solution Strategy: Improve your Talent Management Plan, Try Your Best, or Live with It
Loyalty 2: Swing
Swing Talents are “loyal” because:• Individual Relationships• Convenience (at that point in time)• Contractually tied-up• Direct Incentives*
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Direct Incentives*• No better alternative• Subordinates• No known alternative• CV friendly
Post-Recession
Retention
Experience Swing Ex
http://totallyunrelatedrandomanddebatable.blogspot.com/
Experience Swing Ex
Oppose
Post-Recession
Swing Loyalty: Try Your Best…
1. Over Promote2. Loans3. Spot Bonuses4. Block recruiters5. The Spouse
9. “Position” the competition
10.Sell the Dream11.Give them a Best
Friend
http://totallyunrelatedrandomanddebatable.blogspot.com/
5. The Spouse6. Toys7. Glorified Titles8. Forced Ambassador
Friend12.Internal Trainer
Talent Strategy: C&B
1. Eliminate Staff Awards2. Eliminate Staff Trips3. Eliminate HOD trips4. Remove Salary structure
limitations for TP
8. Additional Profit Sharing points for TP
9. ↑ Pay for Performers, ↓ pay for Non-Performers
10.Additional % during
http://totallyunrelatedrandomanddebatable.blogspot.com/
5. Premium Group Pay6. Year-round
promotions/increment7. Spot Bonus Pool
10.Additional % during annual increments
11.Special Allowances12.SCL Allowances13.Flexitime
• Exercise: What ‘Caring’ C&B policies do you have to attract and retain talent?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Values Driven C&B
1. Performance2. Differentiation3. Caring4. Non-tangibles & Segmentation
http://totallyunrelatedrandomanddebatable.blogspot.com/
4. Non-tangibles & Segmentation
Demographic Segmentation - General
Veterans (Pre-Boomers)1934-1945
BoomersGen Y
http://totallyunrelatedrandomanddebatable.blogspot.com/
Boomers1945-1960
Gen X (Cusper, Buster)1960 - 1980
Gen Y (Millennials, Netster)
1980+
Demographic Segmentation - others
1. Women, Working Mothers2. Youtube generation3. Working retired4. Social Activists
http://totallyunrelatedrandomanddebatable.blogspot.com/
4. Social Activists5. Work/Life balancers6. Industry (ICT, Advertising, Engineer,
Accounting, Lawyer, etc.)
What needs work?Im
port
ance
to
Targ
et S
egm
ent
High
Familiarity with Tasks
Training Opportunities
Attractive Location
For people like me
Fun place to work
Innovative
http://totallyunrelatedrandomanddebatable.blogspot.com/
Current Attractions
Impo
rtan
ce to
Ta
rget
Seg
men
t
Low
Weak Strong
High Salary
Career Opportunities
Overseas Opportunities
Innovative company
What needs work?Im
port
ance
to
Targ
et S
egm
ent
High
Familiarity with Tasks
Training Opportunities
Attractive Location
For people like me
Fun place to work
Innovative
http://totallyunrelatedrandomanddebatable.blogspot.com/
Current Attractions
Impo
rtan
ce to
Ta
rget
Seg
men
t
Low
Weak Strong
High Salary
Career Opportunities
Overseas Opportunities
Innovative company
Caring (1/2)
Loans/Subsidies
LactationRoom
Allowance/COLA
Uniform
Staff Discounts
http://totallyunrelatedrandomanddebatable.blogspot.com/
Room
ExtensiveTraining
FlexitimeWork/LifeBalance
SRC
Free Carpark
Subsidized Lunch
COLA
Caring
Caring (2/2)
Add. Maternity
LeaveFree IT Classes
PaternityLeave
Transfer/Secondment
InternalSelection
http://totallyunrelatedrandomanddebatable.blogspot.com/
Classes
Discount PnB
& OOP
EmergencyLoan Study &
Exam Leave
Library &Magazines
Sub. Yoga/Line Dance
VanTransport
(KTM)
Leave
Caring
For Starting Up…Im
port
ance
to
Targ
et
Seg
men
tHigh
http://totallyunrelatedrandomanddebatable.blogspot.com/
Impo
rtan
ce to
Ta
rget
S
egm
ent
Low
For Starting Up…
http://totallyunrelatedrandomanddebatable.blogspot.com/
Current BrandWeak Strong
http://totallyunrelatedrandomanddebatable.blogspot.com/
INTANGIBLE BENEFITS & STAFF MOTIVATION
Part C
http://totallyunrelatedrandomanddebatable.blogspot.com/
ATTRACTING AND POSITIONING
Employer Branding
The real goal of Marketing and Branding
http://totallyunrelatedrandomanddebatable.blogspot.com/
Branding
Understanding our role in the whole scheme of things
• Exercise: Why do we need ‘Branding’?
http://totallyunrelatedrandomanddebatable.blogspot.com/
What is the purpose of Marketing & Branding?
Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.”
http://totallyunrelatedrandomanddebatable.blogspot.com/
prices.”
Sergio Zyman
“Retention and Loyalty are useless if No Conversion is happening.”
What is the purpose of Marketing & Branding?
“Retention and Loyalty are useless if No Conversion is happening.”
http://totallyunrelatedrandomanddebatable.blogspot.com/
“Communication is useless if No Conversion is happening.”
What is the Objective?
1.Comm = Relationship (something like Dating)
2.Comm ≠ Media glitz 3.Comm ≠ ATL/BTL/BwTL/ArTL/FTL
http://totallyunrelatedrandomanddebatable.blogspot.com/
4.Comm ≠ CSR5.Comm = Get more people, to buy
more, more frequently, at higher prices
Intro
“Retention and Loyalty are useless if No Conversion is happening.”
http://totallyunrelatedrandomanddebatable.blogspot.com/
“Retention and Loyalty are useless if No Performance is happening.”
Intro
Loyalty is misleading…
• Heavy Consumption ≠ Loyalty
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Loyalty ≠ Heavy Consumption
• Good Performance ≠ Retention• Retention ≠ Good Performance
So… are we in business for Retention or Performance?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Retention or Performance?
Corporate & Employer Brand
Corporate Brand
http://totallyunrelatedrandomanddebatable.blogspot.com/
Employer Brand
Right Type of People
Why Employer Branding?
Employer Branding
1.Attract2.Retain
http://totallyunrelatedrandomanddebatable.blogspot.com/
Branding 3.Motivate4.Focus
Components of Branding
http://totallyunrelatedrandomanddebatable.blogspot.com/
Positioning, Execution, and Communication
Components of Branding
Positioning
http://totallyunrelatedrandomanddebatable.blogspot.com/
Execution
Communication
Brand Positioning
http://totallyunrelatedrandomanddebatable.blogspot.com/
Segmentation, Targeting, Basics, Differentiators
Positioning
“Hope is not a strategy”
http://totallyunrelatedrandomanddebatable.blogspot.com/
“Hope is not a strategy”John Maxwell
Positioning
• For who? – Segmentation, Targeting• Your Offer? • Key Differentiator?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Two Types of Segmentation for HRM
1. Demographic segmentation2. Talent segmentation
http://totallyunrelatedrandomanddebatable.blogspot.com/
http://totallyunrelatedrandomanddebatable.blogspot.com/
UNDERSTANDING DEMOGRAPHICS
Recruitments of Gen X and Gen Y
Demographic Segmentation - General
Veterans (Pre-Boomers)1934-1945
BoomersGen Y
http://totallyunrelatedrandomanddebatable.blogspot.com/
Boomers1945-1960
Gen X (Cusper, Buster)1960 - 1980
Gen Y (Millennials, Netster)
1980+
• Now 4 Generations in the workplace• Events and conditions each of us experience during
our formative years help define who we are and how we view the world.
• Each Generation has different value systems –
Generational Differences In The Workplace
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Each Generation has different value systems –Values drive behavior.
• We need to understand each other so we can value what each generation brings to the team.
• In 10 years, 40% of current workforce will retire.
• X&Y act first, evaluate later – they know more than older generations knew at their age. Thrive in speed and chaos. May think about having multiple careers. – May not Actively Listen to Builders & Boomers, missing
valuable info.• Builders & Boomers – paid their dues, have vast experience &
knowledge.
Generational Thoughts
http://totallyunrelatedrandomanddebatable.blogspot.com/
– May question how much X&Y know, undervalue their quick decision-making, don’t think of them as colleagues and collaborators because assume they’re inexperienced.
– May think X&Y are too impatient –quick to throw out tried & true strategies .
• Loyalty to Co. – Builders & Boomers may value; X&Y may not• Challenge Authority – Builders & Boomers may not, X&Y may.• Work Life Balance: Builders & Boomers may do without, X&Y
may not do without.
Generational Thoughts
• Builders may see Boomers as self absorbed & prone to sharing too much info.
• Boomers may see Builders as dictatorial and rigid.
• Y may view X as too cynical and negative.
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Y may view X as too cynical and negative.• X may view Y as too spoiled and self-
absorbed.• X may view Boomers as being too Politic –
say right thing to right person.
All Generations want:
Work-Life Balance – flexible hours, fewer hours• Younger Generations – may be less ambitious in
traditional terms, less willing to make tradeoffs - family focus.
What Bonds Generations
http://totallyunrelatedrandomanddebatable.blogspot.com/
focus.• Boomers – want time for hobbies or fitness, care for
aging parents, family, start own business.Timely, Constructive FeedbackSense of Community with OthersEffective Projects and MeetingsUse their TalentsEnhance their Skills
Things Research SaysGens Want to be Valued for
• Builders: “Your experience is respected – It’s valuable to hear what’s worked in the past.”
• Boomers: “You are valuable & worthy. Your contribution is unique and important to our success.”
• Xers: “Let’s explore some options outside the box –your technical expertise and is a big asset.”
http://totallyunrelatedrandomanddebatable.blogspot.com/
your technical expertise and is a big asset.”• Y’s: “You will be collaborating with other bright,
creative people – you have really rescued this situation with your commitment.”
What All Generations Need to Do
Seek balance between • building on traditional procedures and • supporting flexibility and creativity
to effectively blend the generations work ethics.• Allow choices• Openly explore ideas
Value different points of view
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Openly explore ideas• Value different points of view • Encourage active listening • Share expertise • Share recognition and appreciation• Value hard work• Build in humor and fun into learning. • Accommodate the needs and values of all generations.
What Generation’s Next?
The Millenniums – They are in secondary school right now…coming out
http://totallyunrelatedrandomanddebatable.blogspot.com/213
right now…coming out soon…in about 10 years or so
Demographic Segmentation - others
1. Women, Working Mothers2. Youtube generation3. Working retired4. Social Activists
http://totallyunrelatedrandomanddebatable.blogspot.com/
4. Social Activists5. Work/Life balancers6. Industry (ICT, Advertising, Engineer,
Accounting, Lawyer, etc.)
Exercise: Who is your target?
Company Segmentation Employer Segmentation
http://totallyunrelatedrandomanddebatable.blogspot.com/
Exercise: Employer Segmentation
Who are your Targets?What do you know about them?
http://totallyunrelatedrandomanddebatable.blogspot.com/
http://totallyunrelatedrandomanddebatable.blogspot.com/
WHAT NEEDS WORK?Employer Branding
Basics & Differentiators
Differentiators
http://totallyunrelatedrandomanddebatable.blogspot.com/
Segments
Targets
Targets
Basics
tiators
Demographic Segment: Example Exercise
1. Gen Y2. ICT3. Women
Refer: • GEN Y ranking of
job considerations• 10 non-monetary
benefits to attract and retain top developers
http://totallyunrelatedrandomanddebatable.blogspot.com/
What needs work?Im
port
ance
to
Targ
et S
egm
ent
High
Familiarity with Tasks
Training Opportunities
Attractive Location
For people like me
Fun place to work
Innovative
http://totallyunrelatedrandomanddebatable.blogspot.com/
Current Brand
Impo
rtan
ce to
Ta
rget
Seg
men
t
Low
Weak Strong
High Salary
Career Opportunities
Expected success of application
Innovative company
What needs work?Im
port
ance
to
Targ
et S
egm
ent
High
Familiarity with Tasks
Training Opportunities
Attractive Location
For people like me
Fun place to work
Innovative
http://totallyunrelatedrandomanddebatable.blogspot.com/
Current Brand
Impo
rtan
ce to
Ta
rget
Seg
men
t
Low
Weak Strong
High Salary
Career Opportunities
Expected success of application
Innovative company
For Starting Up…Im
port
ance
to
Targ
et
Seg
men
tHigh
http://totallyunrelatedrandomanddebatable.blogspot.com/
Impo
rtan
ce to
Ta
rget
S
egm
ent
Low
For Starting Up…
http://totallyunrelatedrandomanddebatable.blogspot.com/
Current BrandWeak Strong
Activity Grid to determine HRM priorities
Increase (↑)What are features/ activities/services to increase?
Create (+)What are features/ activities/services to introduce?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Reduce (↓)What are features/ activities/services to reduce?
Eliminate (-)What are features/ activities/services to eliminate?
Exercise: Activity Grid
Increase (↑) Create (+)
http://totallyunrelatedrandomanddebatable.blogspot.com/
Reduce (↓) Eliminate (-)
http://totallyunrelatedrandomanddebatable.blogspot.com/
THE TALENT & PERFORMANCE MANAGEMENT SYSTEM
Part D
Talent & Performance Management
Philosophy
P/P Grid, SP Table, PDP, Premium,
P/P Grid, Q12, PA, SDP, SP
Selection
http://totallyunrelatedrandomanddebatable.blogspot.com/
PhilosophyOJT, Mentoring, Big-5, LP, PDP, SDP, Projects,
Q12, C&B, ACDP, SCL, Transfers, Events, Recognition
PA, SDP, SPDevelopment
Motivation
Evaluation
Why do we hate Performance
http://totallyunrelatedrandomanddebatable.blogspot.com/
Why do we hate Performance Appraisals?
As an Appraisee
As an Appraisor
Complaints about Performance Appraisals
Mgmt/HR
http://totallyunrelatedrandomanddebatable.blogspot.com/
As an Appraisee
Complaints about Performance Appraisals
• Bias• Different Standards• Surprise• Subjective
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Subjective• No linkage*• No differentiation• Secretive• No follow up• No control
As an Appraiser
Complaints about Performance Appraisals
• Cannot remember• Tedious• Subjective• Right targets
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Right targets• Scoring Competencies*• Defensive staff• No $$ to differentiate• Prejudices• Results or Activities
Complaints about Performance Appraisals
• Flexible or Control?• MBO or Character?• Best Practice or Fit Culture?• Backward or Forward?
Mgmt/HR
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Backward or Forward?• Quarterly Results or Long-term?• No $$ to differentiate*• Perfect System, Bad performance• Recency and Halo effects• Untrained Appraisers
Complaints about Performance Appraisals - Summary
1. Process problem2. Form problem3. People problem
http://totallyunrelatedrandomanddebatable.blogspot.com/
What’s the Difference?
Performance Appraisal Performance Management
http://totallyunrelatedrandomanddebatable.blogspot.com/
Coaching & Counseling
Month 1 Month 12Month 2-11
http://totallyunrelatedrandomanddebatable.blogspot.com/
Performance Planning
Month 12
Performance Appraisal
Month 2-11
?
What is the OBJECTIVE of a Performance Management System?
• What is the ultimate objective of a Performance Management System?
• ‘Performance’ – achievement, • ‘Management’ – controllable, improvement• ‘System’ – predictable outcome, autorun
http://totallyunrelatedrandomanddebatable.blogspot.com/
• ‘System’ – predictable outcome, autorun
Summary?• A Predictable process to Improve Controllable
Achievements
What’s In Between Planning and Execution?
Budgeting + Planning
KPIs
BSC
Business Model
http://totallyunrelatedrandomanddebatable.blogspot.com/
Succession Planning (Business Continuity)
Talent Management
Differentiation
Performance Management System
Budgeting + Planning
What is the OBJECTIVE?
Budgeting + Planning
BSC and KPIs
Strategy
Business Model
Business Strategy Execution
http://totallyunrelatedrandomanddebatable.blogspot.com/
Succession Planning (Business Continuity)
Talent Management
Differentiation
Performance Management System
Talent Management
Intro
• Performance Management System = Business Plan Implementation
• Succession Planning = Business
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Succession Planning = Business Continuity Planning
• Talent Management = Sustainable Business Performance Management
Sources of Goals and KPIs
• Exercise: List down the sources of Goals and KPIs available in your company:– E.g. Job Description (RDQ)
http://totallyunrelatedrandomanddebatable.blogspot.com/
MBO – Sources of KRAs and KPIs, Targets
1. Department Scorecard [E3], 2. Employee’s Job Description, 3. Department SOP, 4. Department Quality Objectives,
http://totallyunrelatedrandomanddebatable.blogspot.com/
4. Department Quality Objectives, 5. Corrective Action Requests (CAR), 6. Preventive Action Requests (PAR), or 7. Special Projects relevant to the
employee.
Basics of the Balanced Scorecard
http://totallyunrelatedrandomanddebatable.blogspot.com/
Basics of the Balanced Scorecard
Reminder: Why BSC?
• Reason 1: Balanced• Reason 2: Cause-and-Effect
http://totallyunrelatedrandomanddebatable.blogspot.com/www.myCNI.com.my www.OOBEY.com
Revenue
Base Retention
Share Gain Positioning Adjacent Market
New Business
Financial
Customers
Cost Margin
Cause and Effect
Cash Flow Asset
Satisfaction
http://totallyunrelatedrandomanddebatable.blogspot.com/
Learning & Growth
Internal Process
Operational Excellence
Product Leadership
Customer Intimacy
Investment Strategy
Competencies Information Systems Motivation, empowerment,
alignment
Financial
Customers / Distributors
Revenue GrowthProductivityMarket Value
Target Markets
Products/ Services
Channel Strategies
Cause and Effect: An Example
http://totallyunrelatedrandomanddebatable.blogspot.com/
Learning & Growth
Internal Process
Department Operations
Supplier & Alliances
External Involvement
Human Resources
Technology
Information & IntelligenceSystems &
Processes
Financial
Customers / Distributors
Example: 1st Level BSC & KPIs
Profit after Tax. Revenue. Cash-to-cash cycle. Operating cash flow
Customer Complaints. Customer Acquisition Rate. Product Availability. Product Quality & Service. Renewal Annual Subscription. Distributor Rank Achievement. No. of Active Distributor. No. DC/Regional Sales. Distributor with commission
http://totallyunrelatedrandomanddebatable.blogspot.com/
Learning & Growth
Internal Process
Customer Database Availability. Accuracy of Forecast Planning. Continuous Improvement. Response Time to Customer Needs. Perfect Order Fulfillment. Inventory Turnover. Number of Effective Sponsoring Program. On Time Delivery. No. of Effective Training. Number of Effective A&P
% of staff evaluated on Core Competency Framework. % of staff with Career Development Plans. No. of training hours completed per staff. % of staff with access to strategic information. Q12 Index. % staff evaluated on Culture alignment
Leading and Lagging KPIs
http://totallyunrelatedrandomanddebatable.blogspot.com/
Leading and Lagging KPIs
Cause and Effect
Goal:Healthy!
What are my Vital Signs?•Blood Pressure?
http://totallyunrelatedrandomanddebatable.blogspot.com/
Pressure?•Temperature?•Cholesterol?•Fever?•Chest Pain?•Dizziness?
Cause and Effect
Also known as:Leading vs. Lagging
http://totallyunrelatedrandomanddebatable.blogspot.com/
Leading vs. Lagging Indicators
Exercise: Leading vs. Lagging
Lagging?
• Monthly Sales• Customer Retention• Project success
Leading?
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Project success • Event attendance• ARPU• Customer Satisfaction• Dealer Satisfaction
Financial“To satisfy our stakeholders, what Financial objectives must we accomplish?”
Customer“Who are our target customers?What is our value proposition?”
Cause & Effect: Strategy
http://totallyunrelatedrandomanddebatable.blogspot.com/
Internal Process“To satisfy our customers, in which internal business processes must we excel?"
Learning & Growth“What capabilities and tools do our employees require to help them execute our strategy?
Top Performers and the ‘No Contribution’ Problem
LaggingHistorical, Outcome, Results, 1st
Level, Usually Financial or tangible, Quarterly and Annually
http://totallyunrelatedrandomanddebatable.blogspot.com/
LeadingCurrent, Indicators, Drivers, 2nd
Level onwards, usually non-financial or intangible, Weekly, Monthly and Quarterly
Developing ‘Driver’ KPIs
Customer Retention % Lagging, 1st Level
Customer Satisfaction Index
Leading, 2nd Level
http://totallyunrelatedrandomanddebatable.blogspot.com/
On time delivery
Time to market for new products
TNA %
Defect levels, warranty claims
Leading, 3rd Level onwards
What is the Objective?
‘Do-or-Die’ KPIs for CNI• Revenue• ARPU
• Sponsoring
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Sponsoring• Retention
• Commission Plan (BDP)• Product• Corporate Image
• Exercise: What are the Key 1st Level KPIs for your Industry?
http://totallyunrelatedrandomanddebatable.blogspot.com/
• Exercise: Developing your own Leading and Lagging KPIs
http://totallyunrelatedrandomanddebatable.blogspot.com/
B2B/B2G BSC Matching
Revenue
Base Retention
Share Gain Positioning Adjacent Market
New Business
Financial
Internal Process
Customers
Cost Margin Cash Flow Asset
Operational Product Customer Investment Strategy
Satisfaction
Customer/Client/ Government BSC
RevenueFinancial
Customers
Cost Margin Cash Flow Asset
Satisfaction
Your BSC
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Learning & Growth
Excellence Leadership Intimacy Strategy
Competencies Information Systems
Motivation, empowerment,
alignment
Base Retention
Share Gain Positioning Adjacent Market
New Business
Learning & Growth
Internal Process
Operational Excellence
Product Leadership
Customer Intimacy
Investment Strategy
Competencies Information Systems
Motivation, empowerment,
alignment1. Draw your ‘customer’s’ BSC
2. Match their CP/IP with your CP
3. Identify IPs that support/conflict
Performance Standards
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Performance Standards
MBO Standards
A Excellent
B Good
C Average
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C Average
D Poor
E Useless
MBO Standards
A Excellent
B Good
C Average Good
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C Average Good
D Poor
E Useless
MBO Standards
A Excellent Excellent
B Good Very Good
C Average Good
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C Average Good
D Poor Not Good
E Useless Commit Suicide
MBO Standards
A Excellent Consistently achieved 4 for 3 quarters
B Very Good Higher than planned results
C Good Achieved Planned Results
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C Good Achieved Planned Results
D Not Good Did not fully meet planned results
E Commit Suicide
Unacceptable performance
Refer: Priority, Targets and Standards
Rating Scale
≥ 105 million kilo of A5
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98 million kilo of A 4
95 million kilo of A3
94 million kilo of A2
��93 million kilo of A1
Performance Planning: KPIs and Critical Goals
• Refer Workbook: Performance Planning Worksheet
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Performance Planning and KPIs: Cascading from Company-Department-
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Cascading from Company-Department-Individual
E3 – Department BSC
Financial Perspective
Goals Measures Targets CAPEX OPEX
Quality
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Innovation
On Time Delivery
Individual Performance
1.0 Key Results
Area (Max 6)
2.0 Goals and
Targets for Q1
3.0 Achievements and
Efforts for Q1
4.0 Merit* 5.0 Rating (Merit x Weight)
6.0 Appraiser
Overall Comments/ Feedback
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Cascading
Customer Perspective
Goals Strategies Targets Direct Indirect
Base Retention
Mkt
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Retention
Share Gain Mkt
New Business
BD
E3 – Department BSC
Customer Perspective –Marketing Department
Goals Strategies Targets CAPEX OPEX
Base Retention
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Retention
Share Gain
Budgeting
Individual MBO
Employee A – Marketing Executive
KRAs Action Plans
Targets Weight (%)
Score
Class A
Re: Base Retention
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Class A Customer Retention
Class B Customer Retention
Competition Crossovers
Start Up
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The end of the Beginning
The Wish List
1. Health and Wellness2. Work/Life Balance3. Mobility4. Innovation
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4. Innovation
For Starting Up…
1. Get the Business Strategy right2. Link C&B to Strategy (e.g. BSC)3. Clarify the C&B Philosophy4. Strengthen Performance Management System5. Redirect Funds ($$)
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5. Redirect Funds ($$)6. Design simple processes7. Develop and Reward focused on Talent groups8. Communicate throughout
Problem with C&B…
“Good news for stockholders can be bad news for other
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can be bad news for other stakeholders.”
Gregory Miller, Assoc. Prof., Harvard Business School.
In the end…
• Great Wall of China– humans are the weakest link– bad treatment of staff will lead to weak link i.e.
easier to bribe, easier to con, etc; – bad treatment examples: insulting, lose face,
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– bad treatment examples: insulting, lose face, broken promises, no dignity, public criticism, restructure without communication
Other thoughts…
1. Big matters/Small Matters
2. Differentiate of Die3. Define “Talent”
5. Flat Structure?6. The Jerk Boss7. All aspects8. Hire Strict
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3. Define “Talent”4. No “Jerk” rule
8. Hire Strict
Summary
Segmented & Targeted Attraction, Retention and Succession
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STARS™
End Notes
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The end of the Beginning
Are your employees willing to die for you?
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Taj Mumbai, 2008 • 31 people died and 28 were hurt
• 1,200 and 1,500 guests escaped
• 11 Taj Mumbai employees died rescuing guests
• Restaurant and banquet staff rushed people to safe locations such as kitchens and basements.
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and basements. • Telephone operators stayed
at their posts, alerting guests to lock doors and not step out.
• Kitchen staff formed human shields to protect guests during evacuation attempts
Taj Mahal Palace, MumbaiNovember 26, 2008
Harvard Business Review, December 2011“The Ordinary Heroes of the Taj” by Rohit Deshpandé and Anjali Raina
Taj Mumbai, 2008
• Seek fresh recruits rather than lateral hires.
• Hire from small towns and semiurban areas, not metros.
• Recruit from high schools and second-tier business schools rather than colleges and premier
• Train workers for 18 months, not just 12.
• Ensure that employees can deal with guests without consulting a supervisor.
• Teach people to improvise rather than do things by the book.
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rather than colleges and premier B-schools.
• Induct managers who seek a single-company career and will be hands-on.
• Focus more on hiring people with integrity and devotion to duty than on acquiring those with talent and skills.
than do things by the book. • Insist that employees place
guests’ interests over the company’s.
• Have incumbent managers, not consultants, conduct training.
• Use timely recognition, not money, as reward.
Harvard Business Review, December 2011“The Ordinary Heroes of the Taj” by Rohit Deshpandé and Anjali Raina
Thank You.
soft copy of slides:http://totallyunrelatedrandomanddebatable.
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