【正文】 rces Organization, jobs, skills Management systems Information and systems Culture, values, norms Product Leadership ?Ad hoc, anic and cellular ?High skills abound in looseknit structures ?Concept, futuredriven ?Experimentation and 39。out of the box39。 mindset ?Persontoperson munications systems ?Technologies enabling cooperation ?Rewarding individuals39。 innovative capacity ?Risk and exposure management ?Product Life Cycle profitability Each Discipline Requires Different Priorities amp。 Resources Organization, jobs, skills Management systems Information and systems Culture, values, norms Customer Intimacy ?Empowerment close to point of customer contact ?High skills in the field and frontline ?Customerdriven ?Variation and 39。have it your way39。 mindset ?Strong customer databases, linking internal and external information ?Strong analytical tools ?Customer equity measures like life time value ?Satisfaction and share management ?Focus on ‘Share of Wallet’ Each Discipline Requires Different Priorities amp。 Resources Incentive Problems Problem with Incentives in managing performance: ? Most people are confused or unsure about pensation tools ? Some people misuse pensation tools What to Pay? ? Pay for Service ? Pay for Job ? Pay for Performance ? Pay for Competency Performance and Incentives 1. Internal Equity 1. Internal Job Rates 2. Performance differentials 2. External Competitiveness 1. External Job Rates Benchmarking 2. Demand amp。 Supply What?s the Difference? ? Increment ? Bonus ? Promotion Compa Ratio Table Use this if your pany: ? Pays for Performance, and ? Pays for Job rates Def: MidPoint = Mid Point of Pay Grade Grade E2 Min RM2,000 MID RM2,500 Max RM3,000 Compa Ratio Table ≥ ≤ ≥ ≤ 5 4 3 2 1 Compa Ratio Table ≥ ≤ ≥ ≤ 5 4 3 5% 2 1 Compa Ratio Table ≥ ≤ ≥ ≤ 5 9 4 7 3 9 7 5% 4 3 2 2 1 0 Compa Ratio Table ≥ ≤ ≥ ≤ 5 15 12 9 8 7 4 12 9 7 5 3 3 9 7 5% 4 3 2 6 4 2 1 0 1 4 2 0 0 0 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 petitors to recruit, 6. lessen teamwork amp。 helpful culture, 7. less and less impact for same value, 8. mockery of base salary and employment contract, 9. rebellion from nonincentivised staff, up incentivising everyone for everything?, Other Performance Review processes 1. Result Planning schedule inc. BSC, Budget 2. Quarterly Performance Appraisals 3. EMC – sales performance 4. QMS – nonsales performance 5. Divisional meetings 6. Annual Appraisals 7. Specialized KPI mittees 8. CAR, PAR, SCAR KPI improvements 9. Internal Audit amp。 MSD – process problems 10. HRM amp。 TND – people problems 11. Supervisor Induction – PM training 12. Talent Management Employee Distinction? ≥ ≤ ≥ ≤ 5 9 8 7 6 5 4 8 7 6 5 4 3 7 6 5% 4 3 2 6 5 4 3 2 1 5 4 3 2 1 Employee Distinction? ≥ ≤ ≥ ≤ 5 20 15 12 8 5 4 18 12 9 5 3 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 Increment 5 2 % – 4 % – 3 % – 2 % ≤ 1 0 0% Employee Distinction Group I (Talent Pool) Group II (? Potential) Group III (? Performance) Group IV (Counseling) 2 3 4 5 2 3 4 5 PERFORMANCE POTENTIAL ? Identify Curse of the Bell Curve ?A? Staff ?B? Staff ?D? Staff ?E? Staff ?C? Staff More Problems…. 1. cost of evaluation vs. gains of evaluation 2. defer achievements of a good year to next 3. barely achieve so that next target is not high 4. spread improvements over several years 5. value reducing actions to increase performance 6. most ratings are 4 or 5, new people are 3 Before I fet… ? Retrain Appraisers ? Train new Appraisers Business Situation vs. HR Upturn Flat Downturn Fight Complacency Sharpen Edge Keep Momentum Conquer ?Change? mgmt Reduce Fat Continuity Everyone Happy Innovation Acquire Profits Build momentum Sales Cash Flow Talent Mgmt Stack Ramp。D Slowdown Hiring Early wins Top Talent focus Stack Sales Increase attrition The Business of business is Business, not Human Resource Thank You. soft copy of slides: .