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Assignment of MM6012
Acintya Pramudhita [email protected]
(This document is created for educational required)
Case:Performance management at vitality health enterprise, inc, 9-913-501 (July 12, 2012).
Note: • Author plays a role of HR Departments which should present the problem solution in front of board.• Logo which used to represent Vitality Enterprise is only an ilustration from other enterprise’s logo.
And also some pictures used is downloaded from some website without watermark.
@acintya.mananomaacintyamananoma.
wordpress.com
HR TransformationAS STRATEGIC PATNER, HR DEPARTMENT RECOMEND SOME CHANGING ACTION S IN EMPLOYEE PERFORMANCE MANAGEMENT IN ORDER TO HELP THE SUCESS OF VITALITY HEALTH ENTERPRISE’S STRATEGIC GOALS.
Prepared by HR Departement(Presentation to Board)
Content
4
1
2
3
Brief of PMET 1&2 (Performance Management Evaluation Team)
Key-Solution
Evaluation for PMET 1&2
New PMET 35
Our Financial Condition
The Implementation6
Prepared by HR Departement(Presentation to Board)
Acintya Pramudhita [email protected]
(This document is created for educational required)
Our Financial Condition
0
500
1000
1500
2000
2500
3000
2009 2010 2011 (expected)
Revenue and Net Income (in millions, USD$)
Revenue Net Income
2009-2011 our revenue and net income increased.
Shortly, our Financial Condition is in health level, so that this is become the right time to do the transformation.
Prepared by HR Departement(Presentation to Board)
0
0,1
0,2
0,3
0,4
0,5
0,6
2009 2010 2011 (expected)
ROA
Acintya Pramudhita [email protected]
(This document is created for educational required)
4 rating levelsForced distribution ranking
13 rating levelsAbsolute ranking
Brief of PMET 1&2
2008-2009 2009-2011
Prepared by HR Departement(Presentation to Board)
Manager as a raterMerit pay; Job evaluation points; Compa-ratio
Pay policy in 75th percentile (7-8% higher than competitor)
Acintya Pramudhita [email protected]
(This document is created for educational required)
Evaluation of PMET 1&2 (1/5)
Employee Turnover
• Happen among the highly talented research scientists.
ComplainRaterUnlinked Survey
Prepared by HR Departement(Presentation to Board)
Acintya Pramudhita [email protected]
(This document is created for educational required)
• Unlinked between team and individual performance.
• A failing department would still have a number of high individual performance.
Evaluation of PMET 1&2 (2/5)
Employee Turnover RaterUnlinked SurveyComplain
Prepared by HR Departement(Presentation to Board)
Acintya Pramudhita [email protected]
(This document is created for educational required)
• “A failing department would still have a number of high individIt’s not worth my time. It would be greate for my team but there are too many fires
to put out. Especialy now that I have to do all of them in January. I’ve got more important, more productive things to do.”
• “Who am I to pick between these guys? They’re all good at their jobs. I dont want to pick the winners and losers just to satisfy some arbitary
curve. I’m gonna do the same thing I always did. If it’s that important to HR, let them decide”
• Keep submit uniform ranking rather than following the new guidelines and then forcing HR to fit the distribution curve.
• Some managers submit ranking that fit the curve but then lie and tell their employees they had submitted something higher.
• Rather than identyfying top talent, managers simple tried maintain uniform ranking.
• Assign a Not Rated ranking to any new entry employee ( < 1 year)
• Some managers feels PMET 2 is too rigid.
Evaluation of PMET 1&2 (3/5)
Employee Turnover RaterUnlinked SurveyComplain
Prepared by HR Departement(Presentation to Board)
Acintya Pramudhita [email protected]
(This document is created for educational required)
• “I cracked the code for the latest generation of Ocucream [Vitality’s leading anti-aging eye cream] and what do I get? A pat
on the back and a 2% raise. If your go just down the hall you’ll find two guys who get 5% just for showing up. I can’t tell
what else they’ve done all year.”
• “I do woork for this company but I see nothing special for it. Sometimes I think I would be better off just coasting like some
of the Ivy League guys. You know, the product engineers. They seem to produce nect to nothing but still get the same
ratings as me and my team members. Sometimes even better.”
Evaluation of PMET 1&2 (4/5)
Employee Turnover RaterUnlinked SurveyComplain
Prepared by HR Departement(Presentation to Board)
Acintya Pramudhita [email protected]
(This document is created for educational required)
• Majority (more than 50%), employees prefered PMET 2
• The second largest (31%) preffered PMET 1
• And the rest employee feels indifferent between PMET 1&2
Evaluation of PMET 1&2 (5/5)
Employee Turnover RaterUnlinked SurveyComplain
54%31%
15% Survey Result
Preferred newsystem
Preferred oldsystem
Indifferent
Prepared by HR Departement(Presentation to Board)
Acintya Pramudhita [email protected]
(This document is created for educational required)
Key-Solution
The big picture by Milkovich’s Compensation books.
Prepared by HR Departement(Presentation to Board)
Acintya Pramudhita [email protected]
(This document is created for educational required)
New PMET 3 (1/5)
Prepared by HR Departement(Presentation to Board)
PMET 3
BARS
Individual Reward
Team Reward
Special Reward
Cash Profit
Sharing
Specific Individual and Team Goal SettingRnD Strategic Goals
Company Strategic Goals
Output
Customer Focus Good Collaboration Less Competitive Employee Retention
for High Performance
Acintya Pramudhita [email protected]
(This document is created for educational required)
BARS and Individual Reward (2/5)
Prepared by HR Departement(Presentation to Board)
List of Skills RequiredBased on Job Competencies
List of Company’s Value
Rating Scale
41 2 3
Average Score Pay Increase
> 4,6 8%
3,8 - 4,5 5%
< 3,8 0%
5
The rater is Manager
Acintya Pramudhita [email protected]
(This document is created for educational required)
Cash Profit Sharing (3/5)
Prepared by HR Departement(Presentation to Board)
List of Team Strategic Goals
For Example:• Product
Development• Specification
Development• Government Policy
Making
The Progress
1 2 3
Total Bonus which received by team will be laid on the
project category
Achieved
Acintya Pramudhita [email protected]
(This document is created for educational required)
Cash Profit Sharing (4/5)
Prepared by HR Departement(Presentation to Board)
List ofProject Result
For Example:• Lipstick 24hours• Eyeliner
Waterproof
Maximizing Profit
Profit Sharing will be a number of percentage from the project which effect to
financial result either maximizing profit or
minimizing cost.
Minimizing Cost
In million USD $
Acintya Pramudhita [email protected]
(This document is created for educational required)
Special Reward (5/5)
Prepared by HR Departement(Presentation to Board)
This special reward is given as gratitude for excellence employee which:- Leads an idea of best seller product- Leads an idea of outmost minimizing cost
Acintya Pramudhita [email protected]
(This document is created for educational required)
RaterTraining
Implementation (1/2)
The training will helps the raters which is managers in order to:
• Increases the ability of managers in terms of use performance management
• Increases the engaging between managers and performance management
• Inceases the effectiveness of PMET 3
HR
Prepared by HR Departement(Presentation to Board)
Acintya Pramudhita [email protected]
(This document is created for educational required)
Implementation (2/2)
Training
Training Modul:I. Purpose of
Employee Performance
II. New PMET 3
Offline Guidance Book of New PMET 3
Accomodation:- Meeting room in
Hotel
(in order to tackle the issue: self-unworthy of performance management and attract the attention of RnD Managers)
Trainers:HR Manager and Head of PMET 3 Comitee
Prepared by HR Departement(Presentation to Board)
Acintya Pramudhita [email protected]
(This document is created for educational required)