Performance Management System MOPH Manoon Sunkunakorn October 2, 2017

Agenda

• Performance Management System: Organization Results • Role of CEO and Board on Organizational PMS • Performance Management Process • Implication of PMS • Motivated Employee and Organization Success • Case Study

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What is Performance Management System ? How is it important ?

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Because…. “ ระบบการพฒันาพนกังาน (Employee Development) และบรหิารผลงาน รวมท ัง้ควบคมุสง่เสรมิใหผ้ลการปฎบิตังิานของพนกังานเป็นไปในทศิทางเดยีวกบัปจัจยัความสาํเร็จขององคก์ร

(Organizational performance indicator) เพือ่บรรลซุึง่ผลสาํเร็จ (Organization’s goals) วสิยัทศัน ์(Vision)

และ พนัธกจิ (Mission) ขององคก์ร ผา่นทาง ระบบการบรหิารทรพัยากรมนยุษ ์(HR System) ”

Organization Strategy

I. HR System and Performance Management Systems

II. Driver, Culture and Motivation

Performance Management Outcome

Organization Result

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Human Resources Development & Management

SELECTION PERFORMANCE APPRAISAL

DEVELOPMENT

REWARD

CORE - FULLY UTILIZE - FULLY DEVELOP

ROLE - COMMUNICATION - MOTIVATION - LEADERSHIP - POWER/INFLUENCE

6 Learning and Development

Performance Management System

- Vision / Mission - Organization Direction - SCG Culture - SCG People

-Training opportunity to increase employee competence - Career movement opportunity - INNO Culture(5+3)

-Aligned direction and goals with Vision/Mission - Annual Plan / Action Plan

- Aligned individual plan Annual Plan / Action plan KPIs Competency Setting / Development

Training Road Map - Competency, IDP - Other development activities such as rotation opportunity

Planning Evaluating Monitoring Developing Rewarding

Business Part

Workforce Part

Identify Business Direction

Coaching and Feedback system

Career Planning and Development system Appraisal system

Rewarding system

Corporate performance - Dividend - Capital Gained - Merit Budget - Variable Bonus

- Financial Stability - Competitive Advantage - Productivity growth

Cor

pora

te V

iew

C

ompa

ny /

Div

isio

n Vi

ew

Indi

vidu

al V

iew

- Business Performance 1. EDITDA on OA 2. Relative performance 3. Improvement achieved

- EDITDA on OA - Annual Plan/Action Plan

I. Performance - Annual plan / Action plan - KPIs II. Potential

- Career Management and Development - Talent Management - Succession Planning - Employee Engagement

Monetary Benefit - Merit-Increased - Fixed Bonus - VP and VI - Special Adjustment - Promotion Adjustment - Recognition (Awards) II. Intrinsic Rewards

I. Extrinsic Rewards

- Board Of Director - MDC - Management Com.

- Board of Director - BU/Company - MDC

- Steering Committee - Division / Section - Immediate Boss

(EBITDA, Net Sale, Net Profit, Net Debt, EBITDA on OA, and relevant factors)

(Daily meeting, Monthly meeting, Quarterly meeting, annually)

(Personal,Leadership,Managerial)

(Core and Functional) III. Competency

Manager

Committee

(BU/Company level)

“Support and Commitment from Top

Management”

“Belief and understanding the important of the

process”

Involvement

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Evaluating Corporate Performance as Key Board Task

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Board and CEO Roles

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Business / Company Performance Evaluation

1. Absolute Performance % of EBITDA on Operating Assets of each

Business/Company

2. Relative Performance Compare to other businesses within the same

industry or compare to domestic competitors

3. Improvement Business/company’s capability of improvement

such as Product Development, Productivity etc.

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Performance Management Real

PRactice

SCG’s way

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Competency Evaluation

Potential Evaluation

Performance Appraisal

DesiRe BehavioR

Individual Performance Evaluation (ระบบการประเมนิผลการปฏบิตังิาน แบบ ตวับคุคล)

Identify

Attract Retain

Planning

Performance

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1. Performance

2. Potential

3. Competency

Achievement KPI

Characteristic • Personal

• Leadership • Managerial

Competency • Core

• Functional

Competency Level

Potential Level

Performance Level

Variable Bonus Merit Increase

Career Path (Special)

Special Adjustment

Development

Methods Result Implement

SCG Performance Management Framework

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ปจัจยัในการประเมนิ 1. Action Plan 2. Knowledge Sharing 3. Other assignments

นําผลไปใช ้1. ขึน้คา่จา้ง 2. การจา่ยโบนัสหรอืขึน้เงนิรางวลั

3. การพัฒนา

Evaluating

Monitoring

Planning

Rewarding

1. การประเมนิผลการปฎบิตังิาน (Performance Appraisal)

PDCA

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2. การประเมนิศกัยภาพ (Potential Appraisal)

ปจัจยัในการประเมนิ 1. Personal Characteristics 2. Leadership Characteristics 3. Managerial Characteristics 4. Expert 5. Reliable

นําผลไปใชใ้นการประเมนิระดบัศกัยภาพ

1. ศกัยภาพสงู 2. ศกัยภาพระดบัปกต ิ 3. ศกัยภาพระดบัทีต่อ้งปรับปรงุ

4. ศกัยภาพระดบัตํา่กวา่มาตรฐานมาก

Talent Management and Career Growth

Development

IDP

By job family Develop to be normal

* For S3, S4 for Corporate Functions only

เพือ่จัดกลุม่พนักงานทีม่คีณุลกัษณะเหมาะสมทีจ่ะรับผดิชอบงานในระดบัสงูและเตรยีมแผนพัฒนาในดา้นตา่งๆ ใหแ้กพ่นักงานแตล่ะบคุคล

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Guideline to Potential Management

High Potential

Development Plan Career Growth

Normal

Need to be improved

Exit

Develop & Training Individual

By job family In current practice

Develop to be NORMAL TRACK

Improvable in 2 Yrs.

Unimprovable

Case by case

Fast Track

Promotable after “Fast Track”

Potential Reward

- Promotion - Merit Increase - SA

Information from SCG Performance Management System, March 2007

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Organization Strategy

Organization Competencies

Employee Competencies

Competency-Based Human Resources Management

HR Processes

Excellent Performance

Mission Vision

Values

Strategic Intent

Competency Framework

Performance Management System

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Planning and Evaluating System “If you can measure it, You can manage it.”

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Performance Management (Planning and Eva. Level)

Strategy

Operation

Corporate Performance

Company / Division

Individual Performance

I. To help align employee ambitions with those of the organization. II. Specific and Measurable to be effective.

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Corporate Performance Evaluation

- Achievement on annual plan - Net Sale - Net Profit - Net Debt

Business / Company Evaluation

1. Absolute Performance % of Ebitda on Operating Assets of each Business/Company 2. Relative Performance Compare to other businesses within the same industry or compare to domestic competitors 3. Improvement Business/company’s capability of improvement such as Product Development, Productivity etc.

Individual Performance Evaluation - คณุสมบตัทิีพ่งึมตีาม จรรยาบรรณเครอืฯ - ศกัยภาพ - ผลการปฎบิตังิาน (Performance and Individual Plan)

SCG: Performance Management (Eva. Level)

Initiator (Strategies)

Translator (Business Structure)

Actor plus Result (Action Plan)

Strategy

Operation

- EBITDA on OA - E B I T D A - Operating Profit

- PE Ratio

1. Absolute Performance 2. Relative Performance 3. Improvement

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Result of

-Applied- Performance Management

24 Use of Performance Score Items Directly applied ?

Reward • Merit Increase Direct • Variable Bonus Direct

• Fixed Bonus Indirect

• Special Adjustment Direct

• Promotion Adjustment Direct Career Opportunity • Career Path (Title promotion) Direct

• Career Growth Direct

• Succession planning Direct Development • Business Knowledge program Indirect

• Leadership Development program Indirect

• Performance Improvement program Indirect • Other Development Activities (Ex. Rotation plan) Indirect

PMS and Item applied ..

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Rewarding : Performance against action plan

I. Monetary Benefit - Merit-Increased - Fixed Bonus - Variable Pay and Variable Incentive - Special Adjustment - Promotion Adjustment II. Non-Monetary Benefit Award (Recognition) - Training and Development Opportunity - Special Assignment - Business Trip

“Linkage Between Performance and Pay”

Budget for VP and Salary increase will be varied according to Corporate Performance achievement in each year. Remark:

-------------- Example-------------

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Career Management : Result of performance

I. Career Growth

II. Career Path

Career Growth

Result of Performance & Potential

FAST TRACK

NORMAL TRACK

SLOW TRACK

Level GROUP FAST TRCK NORMAL TRACK SLOW TRACK

S4 2 4 7 S3 2 4 6 S2 2 3 4 S1 2 3 4

Career Identification =====> Potential + Performance

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Succession Plan : Result of performance

Step 3

Step 1

Step 2 Employee Profile

Successor Development

Assessment of Potential

Replacement Chart

Step 4

Next Step will be Immediate Appointment Rotation (1-2 steps) Individual Development Plan : IDP

Classroom Training Project Assignment Coaching/Mentoring Work Shadowing

etc. Successor Review (3 times/year)

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“ SCG Applied” Development : Result of performance

SCG Training and Development Program

SCG Value – CG – Ethical

TRM -Functional Training

TQM-Operational Excellence Safety and Environment

Competency Development

General Management

English Teamwork

Communication Presentation Supervision

Team Building

Leadership Negotiation

Problem Solving &

Decision Making

MDP Mgt. Dev. Prog

BCD Bus Concept

Dev

ABC Abridge Bus.

Concept

LDP 3 Facilitative Leadership

LDP 2 Leading the Team

LDP 1 Leading Yourself

AMP Adv Mgt Prog.

EDP Exec. Dev. Prog.

Operator

Supervisor

Manager

Executive

Employee Level

Marketing Leadership Pro.

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Motivated Employees Organization Success

When … meet

………

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Question and

Answer