HR- Connect the Dots

By V. Jagannathan Presentation to Young HR Managers organized

by

SHARP FORUM- 2013

Expert–The term used to describe those individuals born between 1945 and 1964. Generation X - The term used to describe individuals born between 1965 and 1980. Generation Y - The term used to describe individuals born between 1985 and the present.

Job Analysis: HRM Tool

4

Tasks Responsibilities Duties

Job

Analysis

Job

Descriptions

Job

Specifications

Knowledge Skills Abilities

(Competencies)

Human Resource Planning & Budget

Recruitment

Selection

Training and Development

Performance Appraisal

Compensation and Benefits

Safety and Health

Employee and Labor Relations

Legal Considerations

Job Analysis for Teams

WHAT IS THE COMPETENCY? ( -ASK)

5

Improve the performance

Knowledge

Skills Attitute

APPLICATION OF COMPETENCY MODEL

7

Training & Development

Job Analysis

Personnel Selection

Performance Management

Staff Motivation

Mandated leadership

courses

Define job required

competency KPI + behavior based PA

Competency based interview

Competency based retention system

Learning & Development Center

Competency Development programme

Career Development Center

Training Center

Professional Competencies

Trainee and Apprentice Development Programme

Young Manager Programme

Leadership Development Programme

Job Rotation program

Mandated Leadership Training Programs

Professional Skill Training

Internal Trainer Development

External consultant/ University Program

Key Talent Development Programme

Culture Development programme

Talent Management

Dedicated Learning and Development Centre

Leadership Competencies

Inputs

TOOLS ( Job Design and

Goal Setting)

Performance

( performance Appraisal)

Outcomes

( Pay and Career

opportunities)

Effort

Time

Education

Experience

Skills

Knowledge

Job behaviours

Quality of Work

Quantity of work

Level of work ( Satisfaction

of customers)

Pay

Job security

Benefits

Vacation

Job satisfaction

Feeling of accomplishments

Pleasures of doing

interesting work

Motivation/ Performance/ Interlinks Inputs>>>>>>>>>>>>>>>>>>>>>>> Performance>>>>>>>>>>>>>>>>>>>>>>>>Outcome

Performance Pay Dynamics

Individual and referent Equity= O/I= O/I Overpayment = I>R Underpayment =I<R Ways to restore Workers can change the input of output Workers can change the referents inputs or outcomes Workers change their perceptions of inputs and outcome ( either own or others) Workers can change the referent Workers leave the jobs or organisation or force referent to leave the jobs

11

Purpose of Compensation Strategy

Motivate &

Retain Staff

Attract talent

Performance based

Remuneration

Administratively

Efficient

Reward Valued

Behavior

Effective

Compensation

Ensure Internal

and External

Equity

Structured

Processes

Legal

Compliance

Compensation Model- Strategic Decisions links

Equity Compensation Tool

Objective

External (Pay Level)

Market Surveys Attraction

Internal (Pay Structure)

Job Analysis Evaluation Retention

Individual (Pay for Perf.)

Performance & Seniority Motivation

Procedural Justice (Pay Administration- structure)

Communication, Appeals Culture and , Commitment

12

The Pay Model Business Goals

Business Strategy

Compensation Plan

Market Surveys

Compensation Strategy

Job Analysis & Evaluation

Comp & Ben Inputs

Total remuneration

Performance Management

Non-Financial Rewards Org.Structure

Performance linked Pay

Individual Pay

Contribution /Expected out puts

Internal Equity External Equity

MD

H

R H

ead

E

mp

loye

e

C &

B T

eam

Pay levels / structures

Compensation activities serve Business

Objectives

Compensation strategy is periodically

reevaluated and the Compensation plan

periodically developed

Compensation & Benefit team work on

development and implementation

• Facilitate the Organization Performance— Links the compensation of employees to the mission, objectives, philosophies, and culture of the organization.

(strategic congruence)

• Control Labor Costs ( by using compensation- ratio)

• Attitudes and Behaviors ( Attract, Retain, Motivate)

• Follow Laws and Regulations ,

• Comparable with others and No Discrimination

• Objective : “Competitive pay for key and contributing performance to Attract, Retain, Motivate the human assets by efficient methods and uniform process”

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Pay Model

1.Compensation Objectives

Equity ( Match/ lead/ lag)

External Equity

Comparison: outside organization comparison with Market

Internal Equity

Comparison: inside organization, among jobs

Employee Equity

Comparison: individuals doing same job for same organization

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Pay Model II. Foundation Concepts

A. Pay Level ( External Equity)- Pay Levels compare to market lead competition ( Asst. Manager and Above) match competition ( Below Asst. Manager) lag competition ( Based on demand and supply) Mechanism Used: Market Survey

B. Pay Structure ( standardization) Pay more for jobs with

greater qualifications less desirable working conditions more valuable output Mechanism used: Job analysis and job evaluation

C. Individual Pay Rates ( Seniority or Pay for Performance or layers) Techniques

Flat Rate ( Fixed) Pay Ranges Mechanisms used: Performance or Seniority

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A Pay Model III. Techniques for C& B Management

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Pay Structure

Techniques tie the four basic policies to the pay objectives ( Need, Expectancy, Equity, Procedural Justice )

LOAN BENEFITS,

good salary

Fast Tract

Candidate

approach

Regular Increment ,

, correction

approach

Personal accident

policy, Group

Mediclaim policy,

Keyman insurance

policy

Promotion

approach

Car Policy,

Telephone,

Gratuity, SAS,

PF HOUSING

LOAN / CAR

LOAN/ Asset

building

opportunity

Post Retirement

programe ( Mediclaim

faciity etc)

•Job Environment

•policies, supervision, co-workers, status symbols, working conditions, flextime, compressed work week, job sharing, flexible benefits programs

•The Job

•interesting, challenging, responsible, opportunity for recognition, advancement, feeling of achievement

•Insurance

•Social security benefits

•Paid absences

•Suggestion rewards

•Benefits like canteen,

• transport, loan, U Uniform

•Wages

•TAI

•Bonus

• Incentives

Financial- Direct

Financial-

Indirect

Non- Financial- Indirect

Non-Financial

Direct

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C & B programme Total Compensation -

Extrinsic

Total Compensation -

Intrinsic

What is Engagement? Capturing the hearts and minds of all people that inspires their behaviors

toward discretionary effort and greater contribution.

3 key factors in an engaged employees:

Reference: Hewitt Engagement Report

Engagement Drivers By Age

Reference: Hewitt Asia Engagement Report

Employee Engagement Drivers

What Motivate Top Talent Organization reputation

Differentiated compensation and recognition

Customized development plan

Regular and open dialogues

Less bureaucracy

Valued for contribution

*

The Attrition cycle

Passive

disengagement

Introspection

stage

Active

disengage

ment

Decision

making

Transition

stage

Withdrawal

stage

Employee

exit

employee External

factor-Pull

Internal

trigger-

Push

*

Retaining employees in the Attrition cycle

Passive

disengagement

Active

disengagement

Transition

stage

Withdrawal

stage Employee

exit Engaged employee

Communicate/

clarify

Involve

Realign/ Re

Induction

etc.

Counter- sell

What attract and retain direct labor force

4.Experts

7.High/Early Potential 9.High/Early Potential

(

2.Contributor

5.Contributor 8.High/Early Potential

1.Concerns

3.Concerns

6.New Entrants (<1year

service)

LOW MEDIUM HIGH

POTENTIAL

HIGH

LOW

MEDIUM

Talent Map

Basic OB Model,

Thank you