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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 CNI Holdings Berhad. www.myCNI.com.my. www.OOBEY.com. Intro: CNI. 19 years old Core Business: MLM

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  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 www.myCNI.com.my www.OOBEY.com

  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 www.myCNI.com.my www.OOBEY.com

  3. 1. The role of proper people management in ensuring Lab Safety and Security www.myCNI.com.my www.OOBEY.com

  4. Alignment: 4-Wheels Model Resources Structure Leadership Person Corporate Objective Performance Objectives Philosophies

  5. Alignment: Why is it important? • Mamak stall www.myCNI.com.my www.OOBEY.com

  6. 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 The McPlaybook* • 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 www.myCNI.com.my www.OOBEY.com

  7. Alignment: Framework • Equal / Fair • Happy / Productive • Performance vs Potential • Retention / Engagement Philosophies www.myCNI.com.my www.OOBEY.com

  8. Alignment: Framework Structure • Org Structure • Job Design • C&B • Policies & procedures • Decision making • Job fit • Management Systems • BSC and KPIs • Decentralized & Empower www.myCNI.com.my www.OOBEY.com

  9. Strategy: Framework Resources • Tools • Physical facilities • Peer support • Information • T&D Programs • Mentors • Guides • ICT • OJT www.myCNI.com.my www.OOBEY.com

  10. Strategy: Framework Leadership • Role modeling • Vision/Mission/Philosophy • Leadership Style • Delegation & Empowerment • C&B, Promotions • Sense of Urgency • Speak regularly about Performance www.myCNI.com.my www.OOBEY.com

  11. Strategy: Framework Person • Recognition • Recruitment • Training • Profit sharing • Values • Motivation • Self Efficacy • Awareness • Useful Competencies • Career aspirations • Attribution (control) www.myCNI.com.my www.OOBEY.com

  12. Alignment: 4-Wheels Model Resources Structure Leadership Person Corporate Objective Performance Objectives Philosophies www.myCNI.com.my www.OOBEY.com

  13. 2. The ‘People’ Problem In Lab Security And How To Deal With It www.myCNI.com.my www.OOBEY.com

  14. 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%) www.myCNI.com.my www.OOBEY.com

  15. Understanding Yourself and Others - Personalities People Peaceful: Phlegmatic Popular: Sanguine Open Closed Perfect: Melancholy Powerful: Choleric Task www.myCNI.com.my www.OOBEY.com

  16. Understanding Yourself and Others - Motives Power (nPow) Affiliative (nAff) Achievement (nAch) www.myCNI.com.my www.OOBEY.com

  17. Beating a Dead Horse www.myCNI.com.my www.OOBEY.com

  18. Most Common Desperate Performance Improvement methods • Send for more Training • Enforce more Incentives (positive/negative) www.myCNI.com.my www.OOBEY.com

  19. Mager and Pipe • Analyzing Performance Discrepancies www.myCNI.com.my www.OOBEY.com

  20. 3. Enhancing Lab Security by Proper Performance Management of Lab Personnel www.myCNI.com.my www.OOBEY.com

  21. Complaints about Performance Appraisals As an Appraisee As an Appraisor Mgmt/HR www.myCNI.com.my www.OOBEY.com

  22. Complaints about Performance Appraisals As an Appraisee • Bias • Different Standards • Surprise • Subjective • No linkage* • No differentiation • Secretive • No follow up • No control www.myCNI.com.my www.OOBEY.com

  23. Complaints about Performance Appraisals As an Appraiser • Cannot remember • Tedious • Subjective • Right targets • Scoring Competencies* • Defensive staff • No $$ to differentiate • Prejudices • Results or Activities www.myCNI.com.my www.OOBEY.com

  24. Complaints about Performance Appraisals - Summary • Process problem • Form problem • People problem www.myCNI.com.my www.OOBEY.com

  25. What is Performance Appraisal used for? Monitor? Reward? Discipline? Development? Motivation? Promotion? www.myCNI.com.my www.OOBEY.com

  26. Performance Management Common terms and definitions Performance Appraisal Performance Development Performance Measurement www.myCNI.com.my www.OOBEY.com

  27. 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 www.myCNI.com.my www.OOBEY.com

  28. What is Performance Appraisal used for? Monitor? Reward? Discipline? Development? Motivation? Promotion? www.myCNI.com.my www.OOBEY.com

  29. Which system should we use? Trait-based Behavior-based Knowledge/Skill based Activity based Results-based Managing Performance = Managing Expectations What’s YOUR expectation? www.myCNI.com.my www.OOBEY.com

  30. Why BSC? • Reason 1: Balanced • Reason 2: Cause-and-Effect www.myCNI.com.my www.OOBEY.com

  31. BSC: Balanced & Cause-and-Effect Customer “Who are our target customers? What is our value proposition?” Learning & Growth “What capabilities and tools do our employees require to help them execute our strategy? Internal Process “To satisfy our customers, in which internal business processes must we excel?" Financial “To satisfy our stakeholders, what Financial objectives must we accomplish?” www.myCNI.com.my www.OOBEY.com

  32. High Vision Led • High Level of employee empowerment • High Employee Performance • High Employee Satisfaction • High Employee Involvement • Challenging Working Environment • Optimum HRM Cost Structure RESULTS DRIVEN Degree of Clarity of Job Results • Provide Coaching & Counselling • Objectives & Key Measures • Standards for Performance • Discuss & Agree on Account UNCLEAR Performance driven o Grievance level o Absenteeism o Discipline issue o Poor work ethics Low High Level of Trust & Commitment (Between Subordinate & Boss) 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 uninterruptedsupply 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 www.myCNI.com.my www.OOBEY.com

  35. MBO Standards www.myCNI.com.my www.OOBEY.com

  36. MBO Standards www.myCNI.com.my www.OOBEY.com

  37. MBO Standards www.myCNI.com.my www.OOBEY.com

  38. 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) www.myCNI.com.my www.OOBEY.com

  39. MBO Target Setting - Objectives and Measures www.myCNI.com.my www.OOBEY.com

  40. Lagging and Leading KPIs 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 www.myCNI.com.my www.OOBEY.com

  41. Developing ‘Driver’ KPIs Customer Retention % Lagging, 1st Level Customer Satisfaction Index Leading, 2nd Level On time delivery Time to market for new products TNA % Defect levels, warranty claims Leading, 3rd Level onwards www.myCNI.com.my www.OOBEY.com

  42. Competency Target Setting • Initiative • Teamwork • Problem Solving • Leadership • Integrity What’s the problem here? www.myCNI.com.my www.OOBEY.com

  43. 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 www.myCNI.com.my www.OOBEY.com

  44. Competency Standards www.myCNI.com.my www.OOBEY.com

  45. 4. Designing Incentive Schemes That Encourages Lab Safety www.myCNI.com.my www.OOBEY.com

  46. Incentive Problems Problem with Incentives in managing performance: • Most people are confused or unsure about compensation tools • Some people misuse compensation tools www.myCNI.com.my www.OOBEY.com

  47. What to Pay? • Pay for Service • Pay for Job • Pay for Performance • Pay for Competency www.myCNI.com.my www.OOBEY.com

  48. Performance and Incentives • Internal Equity • Internal Job Rates • Performance differentials • External Competitiveness • External Job Rates - Benchmarking • Demand & Supply www.myCNI.com.my www.OOBEY.com

  49. What’s the Difference? • Increment • Bonus • Promotion www.myCNI.com.my www.OOBEY.com

  50. 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 www.myCNI.com.my www.OOBEY.com

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