OD Matters

7/26/2019 OD Matters

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Discussion Material

HRMS

March 2009

Corporate Human CapitalTudung Group

For Internal Use


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Company Strategic Direction

Competitors

MISSION

STRATEG

!E RES"#T AREAS AND

CRITICA# S"CCESS $ACTORS

!E ACCO"NTA%I#ITIES

&O% TAS!S

SHAREHO#DERS

C'stomer

O%&ECTI(ES

Str'ct're


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T')'ng H'man Capita* $rame+or,


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Organi-ation Design . !ey Concepts in Design o/ Organi-ation

Span of control- the range of employees who to report to a managerial position

Authority- the formally-granted influence of a position to mae decisions! pursue goals and get

resources to pursue the goals" authority in a managerial role may e#ist only to the e#tent that

su$ordinates agree to grant this authority or follow the orders from that position

Responsibility- the duty to carry out an assignment or conduct a certain acti%ity

Delegation- process of assigning a tas to a su$ordinate along with the commensurate

responsi$ility and authority to carry out the tas

Chain of command- the lines of authority in an organi&ation! who reports to whom

Accountability- responsi$ility for the outcome of the process

Line authority - the type of authority where managers ha%e formal authority o%er their

su$ordinates' acti%ities (the su$ordinates are depicted under the manager on a solid line in theorgani&ation chart)" departments directly in%ol%ed in producing ser%ices or products are

sometimes called line departments


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Mercer

Organi-ationa* DesignM* +orter,s alue .hain

1 2 3

4

56

9

The (a*'e Chain /rame+or, o/ Michae* 7orter is a mo)e*that he*ps to ana*yse speci/ic acti8ities that can create8a*'e an) competiti8e a)8antage o/ a partic'*ar company

In:o'n) #ogistics

Inc*')es ra+ materia*s recei8ing; storing; in8etory contro*;an) transportation sche)'*ing

Operations

Inc*')es machining; e


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H'man Reso'rces= The .7 Management Mo)e*

Ro*e

C*ari/ication

7osition

E8a*'ation

O:ecti8e

Setting

7er/ormance

Re8ie+

Compensation

7erson De8e*opment


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Compensation

Three Management Aspects

ResourcesInventory ResourcesUtilization

Resources Development

O:ecti8e

Setting

7er/ormanceRe8ie+

Ro*e

C*ari/ication

7osition

E8a*'ation

7erson De8e*opment


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Compensation

Three Management Systems

Position

valuation

Performance

valuation

Person valuation

O:ecti8e

Setting

7er/ormance

Re8ie+

Ro*eC*ari/ication

7osition

E8a*'ation

7erson De8e*opment


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E@pecte) ro*eE@pecte) ro*e 7ercei8e) ro*e7ercei8e) ro*e Accepte) ro*eAccepte) ro*e

Allocation of responsibilities

Role clarification

Comm'nication Commitment

Ro*e C*ari/ication B &o: Ana*ysis


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E@amp*e o/ Responsi:i*ity Mapping

HUMANRESOURCES

HR Director Recruitment Manager Etc.

HR Policies

Design, develop and review

HR policies in line with

strategic planning and labor

laws, control implementation

of approved policies.

Follow-up legal requirements

and market practices related to

hiring, suggest new or improved

policies, supervise

implementation of approved

hiring policies.

tc.

Hiring

!et up and control recruitmentneeds assessment s"stems,

approve recruitment plans,

design candidate assessment

tools, participate in selection of

management positions, control

emplo"ment contracts.

#ssess recruitment needs, plan,organi$e and supervise

recruitment campaigns,

participate in selection of

supervisor" positions, develop

emplo"ment contracts, design

and supervise orientation and

relocation programs.

tc.

%ompensation

!uggest %ompensation &i',develop and suggest total

remuneration structure, control

implementation and annual

reviews.

!uggest %ompensation and(enefits Package for new

recruits within total

remuneration structure.

tc.

tc. tc. tc. tc.


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Job Evaluation is the process used to measure the relative jobvalue of positions (not volume of work) within an organisationat

a point in time.

Job evaluation focuses on the actual requirements of a positionand not a person, or their performance.

Jobs are compared in terms of common factors which are

considered to be key determinants of job worth.

Supply and demand issues may aect pay but do not aect jobevaluation.

&o: E8a*'ation . hat is &o: E8a*'ation


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!hy are positions evaluated" #ositions are evaluated to establish internal relativities and to determine the

appropriate classi$cation level within the or%ani&ation.

'his in turn establishes the salary ran%e

!hen mi%ht job evaluation occur"

ormal evaluation may occur when

the requirements of the position have chan%ed, or

when there have been si%ni$cant chan%es or %rowth in the role, or

when new roles have been created.

hat is &o: E8a*'ation conFt


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hat is Organi-ationa*

To :e consi)ere) an organi-ation /or thep'rpose o/ position e8a*'ation; a :'siness

entity nee)s to meet three criteria It m'st=

1 Inc*')e at *east one primary

/'nction; s'ch as pro)'ction; ser8ice;

research; or mar,eting an) sa*es2 Inc*')e at *east t+o s'pporting

/'nctions; s'ch as in/ormation

systems; /inance an) B or h'man

reso'rces; an)

%e operationa* eno'gh to pro)'ce

a))e) 8a*'e

I/ a re8ie+ o/ the str'ct're res'*ts in the )e/inition o/ more than one organi-ation; Mercer

recommen)s e8a*'ating a position +ithin the most speci/ic organi-ationa* conte@t that the

position impacts


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The 8a*'e o/ positions is ca*c'*ate) thro'gh 10 )imensions 'n)er 3 /actors=

Organi-ationOrgani-ation

ImpactImpact

Contri:'tionContri:'tion

!no+*e)ge!no+*e)ge

TeamTeam

%reath%reath

Comm'nicationComm'nication

$rame$rame

Inno8ationInno8ation

Comp*e@ityComp*e@ity

Organi-ation si-e is )etermine) :y monetary

sca*e s'ch as sa*es an) assets; an) n'm:er o/

emp*oyees

Assess impact *e8e* a position has on

organi-ation

Assess re*ati8e contri:'tion that a position

ho*)er ma,es in the conte@t o/ Impact

Assess the nat're o/ the necessary

comm'nication a:i*ity re


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SAMPL

E

Di8BDept= 5inance 6 7ccounting

7osition= Sr* 7ccountant

$actor Dimension Degree 7oints

Impact

8rg* Si&e

1129mpact 2

.ontri$ution 3

Comm'nication.ommunication 3

5rame 2

Inno8ation9nno%ation 3

4.omple#ity 2

!no+*e)ge

:nowledge 3

;eams 2


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Samp*e Gra)e Str'ct're

7ositionC*ass

Gra)eS':.Gra)e

Career Stream

Management +rofessional Staff

= 12 7-eneral Manager

4 = 11 7-


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7ositionC*ass

Gra)eS':.Gra)e

Career Stream

Staff

4 = 40 0 7-eneral Manager*

4 7-


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Compensation 7hi*osophy

O%&ECTI(ES= Ser8es as an o8er8ie+ o/ the maor consi)erations in/*'encing the re+ar)s

program eg; the companyFs :'siness strategy; :'siness 'nit o:ecti8esBinitiati8es; h'man

reso'rces imp*ications; etc At a minim'm; the companyFs compensation program m'st

ena:*e it to attract an) retain peop*e +ith the re


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P50

Q2

Median

P25

Q1!o"er #uarti$e%

P&5Q'U((er #uarti$e%

1)t #uarti$e

2nd #uarti$e

'rd #uarti$e

*t+ #uarti$e

hatFs the Range . L'arti*es


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Gra)e

%ase

Sa*ary

Re) one o8erpai)

L3

L

L2

L1

Green one 'n)erpai)

Re/erence

Sa*ary

In)i8i)'a*

7osition

Sa*ary Range

Compensation Str'ct're Design

I)enti/ying o8erpai) an) 'n)erpai) positions


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L

L2

L1

L3

RE$ERENCE

SA#AR

A%O(E MAKIM"M

%E#O MINIM"M

MIN

MAKHigh*y competent emp*oyee

or o'tstan)ing per/ormer

Recent appointee

Ine@perience) or sho+ing

margina* per/ormance

Competent per/ormer; meets

e@pecte) re


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L

L2

L1

L3

RE$ERENCE

SA#AR

RED ONE

GREEN ONE

(aria:*es to Sa*ary Increment Matri@= 7ay 7osition B Compa.Ratio

MIN

MAK Compa.Ratio percentage is acompensation termino*ogy that is 'se) to)escri:e an emp*oyeeFspay position re*ati8e

to the respecti8e gra)eFs sa*ary range

100

120

60

Compa.

Ratio

In)i8i)'a* Sa*ary

Re/erence Sa*aryP

Mapping the Compa.Ratio +i** ena:*e )eeper

ana*yses into the c'rrent state o/ a

companyFs pay e


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COM72 . C'stom Mar,et 7ay 7osition

75th

70th

72th


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COM72 Q CompanyFs Tren) *ine

Company

75th

70th

72th


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Mercer H'man Reso'rce Cons'*ting

Sa*ary Str'ct're

" Individual SalaryData

Sa*ary Str'ct're; In)i8i)'a* Sa*aries; an) Mar,et Data

Gr 1

Gr 2

Gr

Gr 3

Gr

Gr 4

Gr 5

Gr 6

Gr 9 Gr 10 Gr 11

Ann'a*%aseSa*ary


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Sa*ary Str'ct're Range month*y

Gra)e

Ne+ Sa*ary Str'ct're

Range

Minim'm Re/ Sa*ary Ma@im'm

24!42 32! 4!0 -2F to G2F

13!11 1!031 2! -3F to G3F

4 0! 11!1 14!2 -3F to G3F

3 4!41 !30 !1 -3F to G3F

2 2!312 3!33 4!24 -3F to G3F

1 1!0 1! 2!23 -3F to G3F

Rp000BGross

S

amp*e


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%on's

De/inisi =

%ent', im:a*an yang )i:eri,an per'sahaan 'nt', mening,at,an moti8asi ,era

)a*am sistem rem'nerasi yang :erim:ang 'nt', memac' se*'r'h "nit ,era agar

)apat *e:ih mening,at,an ,ineranya )i tah'n men)atang

7em:erian )i)asar,an pa)a peni*aian prestasi ,era masing.masing ,arya+an

ses'ai )engan hasi* peni*aian prestasi ,era 7er/ormance Appraisa* yang te*ah

)i*a,',an

7encapaian target )ari masing.masing %isnis "nit Sehingga setiap 'nit :isnis )an

,e*ompo, gra)e ,arya+an memi*i,i ta:e* /orm'*a %on's yang :er:e)a.:e)a

Mer'pa,an ha, prerogati/ Manaemen yang pe*a,sanaannya )ises'ai,an )engan

sit'asi )an ,on)isi interna* ma'p'n e,sterna* per'sahaan


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%on's

Masing.masing %isnis "nit penga*i :on'snya )ihit'ng :er)asar,an pencapaian target tah'n *a*'

)an )itetap,an pa)a S! tentang 7e)oman 7er/ormance %on's T')'ng Gro'p; s:: =

"nt', per'sahaan yang :e*'m mencapai target yang te*ah )isepa,ati :er*a,' ,etent'an s::=

7encapaian 7er/ormance %isnis "nit

2 7er/ormance 60; )i:eri,an Grati/i,asi se:esar 0(( ,a*i

gai ,h's's 'nt', ,arya+an )engan masa ,era 1 tah'n ata' *e:ih; )an ni*ai 7A prestasi ,era minima* NI

7encapaian 7er/ormance %isnis "nit 2 ti)a, )i:eri,an Grati/i,asi

NO E%T Rea*isasi 8s E%T Target %'siness 7*an In)e@ 7enga*i %on's1* +erformance F

0;002* 60 +erformance 6

0;3* 6 +erformance 90

0;KK4* 90 +erformance 9

0;* 9 +erformance 100

0;* 100 +erformance 10

1;AA0* 10 +erformance 110

1;%%* 110 +erformance 11

1;CC* 11 +erformance 120

1;DD1* 120 +erformance 12

1;EE11* +erformance I 12

1;EE A*pha

Sam

p*e


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%on's . Samp*e

In)i8i)'a* %on's Scheme

%on's )i:eri,an ,epa)a ,arya+an )engan ,etent'an=

!arya+an yang s')ah )iang,at tetap per tangga* tertent'

!arya+an yang masa ,eranya :e*'m me*ampa'i masa ,era 1 sat' tah'n )ihit'ng secara proporsiona*

!arya+an yang men)apat,an :on's ini a)a*ah ,arya+an yang sampai tangga* pem:ayaran %on's masih

:e,eraBtercatat se:agai ,arya+an a,ti/

Dasar pem:erian %on's )an Grati/i,asi se:agai penga*i a)a*ah Gra)e )an Gai per %'*an Desem:er

*ompany

+chievement

rad

e

#E--/+0*E -+'10

+E /E2 /E 012 01

345 6 7 385

9

:

;

3

?


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#$nly %R can translate a Company&s business

strategy into a detailed talent strategy' %R

should assert their influence and providecredible and proactive business counsel and

support for individual business units'(

Mc!insey L'arter*y Ne+s*etter; A'g'st; 2006

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