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THE ROLE OF PEOPLE MANAGEMENT, PERFORMANCE AND INCENTIVES IN MORE EFFECTIVE LAB SAFETY AND SECURITY

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THE ROLE OF PEOPLE MANAGEMENT, PERFORMANCE AND INCENTIVES IN MORE EFFECTIVE LAB SAFETY AND SECURITY Case Study, Concepts and Debatable Ideas Kenny Ong – PowerPoint PPT presentation

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Title: THE ROLE OF PEOPLE MANAGEMENT, PERFORMANCE AND INCENTIVES IN MORE EFFECTIVE LAB SAFETY AND SECURITY


1
THE ROLE OF PEOPLE MANAGEMENT, PERFORMANCE AND
INCENTIVES IN MORE EFFECTIVE LAB SAFETY AND
SECURITY Case Study, Concepts and Debatable
Ideas Kenny Ong CNI Holdings Berhad
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2
Intro CNI
  • 19 years old
  • Core Business MLM
  • Others Contract Manufacturing, Export/Trading,
    eCommerce
  • Malaysia, Singapore, Brunei, Indonesia, India,
    China, Hong Kong, Philippines, Italy, Taiwan
  • Staff force 500
  • Distributors 250,000
  • Products Consumer Goods and Services

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3
1. The role of proper people management in
ensuring Lab Safety and Security
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Alignment 4-Wheels Model
Corporate Objective
Performance Objectives
Philosophies
5
Alignment Why is it important?
  • Mamak stall

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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


  • 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
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Alignment Framework
Philosophies
  • Equal / Fair
  • Happy / Productive
  • Performance vs Potential
  • Retention / Engagement

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Alignment Framework
  • Org Structure
  • Job Design
  • CB
  • Policies procedures
  • Decision making
  • Job fit
  • Management Systems
  • BSC and KPIs
  • Decentralized Empower

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Strategy Framework
  • Tools
  • Physical facilities
  • Peer support
  • Information
  • TD Programs
  • Mentors
  • Guides
  • ICT
  • OJT

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Strategy Framework
  • Role modeling
  • Vision/Mission/Philosophy
  • Leadership Style
  • Delegation Empowerment
  • CB, Promotions
  • Sense of Urgency
  • Speak regularly about Performance

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Strategy Framework
  • Recognition
  • Recruitment
  • Training
  • Profit sharing
  • Values
  • Motivation
  • Self Efficacy
  • Awareness
  • Useful Competencies
  • Career aspirations
  • Attribution (control)

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12
Alignment 4-Wheels Model
Corporate Objective
Performance Objectives
Philosophies
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13
2. The People Problem In Lab Security And How
To Deal With It
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The People Problem
  • Right Person, Wrong Job (5)
  • Wrong Person, Right Job (20)
  • Wrong Person, Wrong Job (1)
  • Right Person, Right Job, Managed Wrongly (74)

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Understanding Yourself and Others - Personalities
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Understanding Yourself and Others - Motives
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  • Beating a Dead Horse

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Most Common Desperate Performance Improvement
methods
  1. Send for more Training
  2. Enforce more Incentives (positive/negative)

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Mager and Pipe
  • Analyzing Performance Discrepancies

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3. Enhancing Lab Security by Proper Performance
Management of Lab Personnel
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Complaints about Performance Appraisals
As an Appraisee
As an Appraisor
Mgmt/HR
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Complaints about Performance Appraisals
As an Appraisee
  • Bias
  • Different Standards
  • Surprise
  • Subjective
  • No linkage
  • No differentiation
  • Secretive
  • No follow up
  • No control

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Complaints about Performance Appraisals
As an Appraiser
  • Cannot remember
  • Tedious
  • Subjective
  • Right targets
  • Scoring Competencies
  • Defensive staff
  • No to differentiate
  • Prejudices
  • Results or Activities

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Complaints about Performance Appraisals - Summary
  1. Process problem
  2. Form problem
  3. People problem

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What is Performance Appraisal used for?
Monitor?
Reward?
Discipline?
Development?
Motivation?
Promotion?
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Performance Management
Common terms and definitions
Performance Appraisal
Performance Development
Performance Measurement
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What is the OBJECTIVE?
  • What is the ultimate objective of a Performance
    Management System?
  • Performance achievement,
  • Management controllable, improvement
  • System predictable outcome, autorun
  • Summary?
  • A Predictable process to Improve Controllable
    Achievements

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What is Performance Appraisal used for?
Monitor?
Reward?
Discipline?
Development?
Motivation?
Promotion?
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Which system should we use?
Trait-based
Behavior-based
Knowledge/Skill based
Activity based
Results-based
Managing Performance Managing
Expectations Whats YOUR expectation?
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Why BSC?
  • Reason 1 Balanced
  • Reason 2 Cause-and-Effect

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BSC Balanced Cause-and-Effect
Financial To satisfy our stakeholders, what
Financial objectives must we accomplish?
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Performance Management for Change
  • Review Performance Results


33
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.
Ensure availability of adequate supply for future
needs of industries in the district by planning
and designing the High voltage System
Plan and design the High voltage system
Manage major supply projects to customers in the
district.
Ensure satisfaction of the major customers in the
district by managing supply and Distribution.
Ensure high performance and Productivity of
technical staff by adopting proper human resource
management methods on selection, training,
coaching, counselling and motivation.
Supervise all technical staff in the district.
34
MBO Standards
A Excellent
B Good
C Average
D Poor
E Useless
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MBO Standards
A Excellent
B Good
C Average Good
D Poor
E Useless
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MBO Standards
A Excellent Excellent
B Good Very Good
C Average Good
D Poor Not Good
E Useless Commit Suicide
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MBO Standards
A Excellent Consistently achieved 4 for 3 quarters
B Very Good Higher than planned results
C Good Achieved Planned Results
D Not Good Did not fully meet planned results
E Commit Suicide Unacceptable performance
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MBO Target Setting - Objectives and Measures
  • SMART Targets
  • Specific (definite objective and purpose to be
    achieved)
  • Measurable (by definite observation and a
    certain time one should be able to tell whether
    or not it is attained)
  • Achievable (Must be within reach of the
    employees, e.g. to meet stated deadlines, neither
    too high nor too low)
  • Rewarding (Rewarding means it must be satisfying
    to you, no one else)
  • Time phased (per quarter, per year. By end of
    fiscal year, by 15th of November)

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MBO Target Setting - Objectives and Measures
Quality How well the result is produced / performed Errors and Appearance
Quantity How much / many of the results are produced or performed
Cost At what expense the result is produced / performed
Timeliness When is the result to be produced / performed
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Lagging and Leading KPIs
Lagging
Leading
Historical, Outcome, Results, 1st Level, Usually
Financial or tangible, Quarterly and Annually
Current, Indicators, Drivers, 2nd Level onwards,
usually non-financial or intangible, Weekly,
Monthly and Quarterly
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Developing Driver KPIs
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Competency Target Setting
  1. Initiative
  2. Teamwork
  3. Problem Solving
  4. Leadership
  5. Integrity

Whats the problem here?
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Competency Target Setting
  • Initiative
  • Minimize problems quickly without needing to be
    asked
  • Seeks personal growth and professional
    self-development
  • Doing more than is required/expected in a job
  • Seeks new and improved solutions and approaches
    to completing assignments
  • Looks for opportunities to help others and team

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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.
1 Does not meet behavioral standards. Require counseling or disciplinary actions.
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4. Designing Incentive Schemes That Encourages
Lab Safety
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Incentive Problems
  • Problem with Incentives in managing performance
  • Most people are confused or unsure about
    compensation tools
  • Some people misuse compensation tools

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What to Pay?
  • Pay for Service
  • Pay for Job
  • Pay for Performance
  • Pay for Competency

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Performance and Incentives
  • Internal Equity
  • Internal Job Rates
  • Performance differentials
  • External Competitiveness
  • External Job Rates - Benchmarking
  • Demand Supply

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Whats the Difference?
  • Increment
  • Bonus
  • Promotion

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Compa Ratio Table
  • Use this if your company
  • Pays for Performance, and
  • Pays for Job rates
  • Def
  • Mid-Point Mid Point of Pay Grade

Grade E2
MID RM2,500
Max RM3,000
Min RM2,000
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Compa Ratio Table
lt 0.7 0.7 - 0.9 gt0.9 - lt1.1 1.1 - 1.3 gt 1.3
5
4
3
2
1
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Compa Ratio Table
lt 0.7 0.7 - 0.9 gt0.9 - lt1.1 1.1 - 1.3 gt 1.3
5
4
3 5
2
1
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Compa Ratio Table
lt 0.7 0.7 - 0.9 gt0.9 - lt1.1 1.1 - 1.3 gt 1.3
5 9
4 7
3 9 7 5 4 3
2 2
1 0
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Compa Ratio Table
lt 0.7 0.7 - 0.9 gt0.9 - lt1.1 1.1 - 1.3 gt 1.3
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
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Employee Distinction?
lt 0.7 0.7 - 0.9 gt0.9 - lt1.1 1.1 - 1.3 gt 1.3
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
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Employee Distinction?
lt 0.7 0.7 - 0.9 gt0.9 - lt1.1 1.1 - 1.3 gt 1.3
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
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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,
  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?,

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Curse of the Bell Curve
D Staff
C Staff
E Staff
A Staff
B Staff
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Possible TEAM-type KPIs and incentives
Team Type Possible Incentive Type
Functional Recognition for exceptional success (usually not in cash) Individual role considered in normal merit increase process
Process Team competencies recognised in pay for proficiency approach Gainsharing or operational progress incentives
Project/ Time-based Recognition for exceptional individual contributions in spot wards or salary increases Project / programme Phantom Stock or Profit Sharing
Network/ Partnerships Recognition for exceptional individual or team successes in spot awards or share increases Venture profit sharing
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Team Incentive Models
  • 1. Fixed Salary Proportion (Fixed Personal,
    Variable Team)

Performance Incentive Fixed Quantum
(Balance Sum In Bonus Pool Headcount)
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Team Incentive Models
  • 2. Two-tier Multiplier (Variable Personal,
    Variable Team)

Performance Incentive Personal Target
Achievement (Personal Target Achievement x
Team Performance Multiplier)
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Team Incentive Models
  • 3. Team Ratio Plan (Variable Personal, Fixed Team)

Performance Incentive Team Ratio x Personal
Target Multiplier
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5. Using The Right Management And Leadership
Methods
  • Supervising Lab Personnel In Order To Ensure Lab
    Security

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Coaching Counseling
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Removing Obstacles for Improved Performance
Corporate Objective
Performance Objectives
Philosophies
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Situational Management
High
Consulting
Participating
Supportive Behavior
Delegating
Telling
Directive Behavior
High
Low
D1
D2
D3
D4
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Performance Evaluation Session Communication
PASSE
Praise and encourage Ask questions allow the
person to Save Face use SMART goals Encourage
small improvements
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Managing People performance A Summary
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More Problems.
  • cost of evaluation vs. gains of evaluation
  • defer achievements of a good year to next
  • barely achieve so that next target is not high
  • spread improvements over several years
  • value reducing actions to increase performance
  • most ratings are 4 or 5, new people are 3

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The People Problem
Corporate Objective
Performance Objectives
Philosophies
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Thank You.
  • soft copy of slides www.totallyunrelatedrandomand
    debatable.blogspot.com
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