People are rewarded, recognised and cared for

3e People are rewarded,

http://www.flickr.com/photos/loop_oh/3781496443/

recognised and cared for

SUMMARY OF THE LAST SUMMARY OF THE LAST LECTURES – WHAT DID YOU LEARN? YOU LEARN?

International Human Resources Management, Dr. Jörg Klukas

What we have learnt.• EFQM Model for HR-

DepartmentsSub-Criteria 3c

• Target Appraisal Interviews, • Sub-Criteria 3a

• HR Planning• HR Marketing, Recruiting,

Integration

Management by Objectives• Empowerment

• Sub-Criteria 3d• I te al Co icatioIntegration

• Succession Planning• Employee Survey

• Sub-Criteria 3b

• Internal Communication• Feedback, 360°

Sub Criteria 3b• Strategic Competency

Management• Blended Learning

S tSystem• Annual Employee

Feedback Talks


The EFQM excellence modelQ

Leadership

People

Strateg Processes

People Results

Customer Key Performance 3 P lLeadership Strategy

Partnership& Resources

Processes Results

Society Results

PerformanceResults 3. People

a. People plans support the organization’s strategy

b. People’s knowledge and capabilities are developed

c People are aligned involved and empoweredc. People are aligned, involved and empowered

d. People communicate effectively throughout the organization

e. People are rewarded, recognised and cared for

International Human Resources Management, Dr. Jörg Klukas 4

3E PEOPLE ARE 3E PEOPLE ARE REWARDED, RECOGNISEDAND CARED FORAND CARED FOR


The EFQM excellence model – PeopleQ p

3 P l d d i d d d f

In practice, excellent organizations

Ali ti b fit d l t d d d

3e People are rewarded, recognised and cared forAPPROACHES

E ( )• Align remuneration, benefits, redeployment, redundancy and other terms of employment with strategy and policies and, to promote and sustain the involvement and empowerment of their people.

• Adopt approaches that ensure a responsible work/life balance for their l

Work/life balance

Empowerment(3c)

people.

• Ensure and embrace the diversity of their people.

• Ensure a safe and healthy working environment for their people.Motivation

• Encourage their people to participate in activities that contribute to wider society.

• Promote a culture of mutual support, recognition and care between individuals and between teams Total Rewards

InterculturalManagement(L)


individuals and between teams. Total Rewards

MOTIVATIONMOTIVATION


Sucess Factors –Satisfaction & Motivation

The Success of Company

Employee’s emotional connection Employee’s motivation

Overall image Overall satisfaction Intrinsic extrinsic

Train for skills Hire for attitudes

International Human Resources Management, Dr. Jörg Klukas 8Source: forum! Modell zum Einfluss der Motivation auf den

Unternehmenserfolg

Intrinsic&Extrinsic MotivationMotivation of Employee

Extrinsic motivation Intrinsic motivation

Supervisor Satisfaction of the life

Communication Ability of enthusiasm

Team

Perspective

Discipline


Identification9

German Benchmark forMotivation/Statisfaction

Very Satisfied and motivated

over

ave

rage

Very Satisfied and motivated

Average satisfied and motivated

inde

x

Average Satisfied but unmotivated

otiv

atio

n i

Unsatisfied and unmotivated

Very unsatisfied and unmotivatedrage

M

Very unsatisfied and unmotivated

Bel

ow a

ve

Source: Exba Mitarbeiter 2007

Below average Overall satisfaction over average


Motivated Employees Connect with Their Customer

Employee motivation

index 86 pointsn Sa

les

Ret

urn

on

Employee i i

R

motivation index 46 points


Source:KundenstudieHandelsfilialen;Mitarbeitemotivationsindex auf einer Skale vom 0-keine Motivation bis 100- maximaleMotivation

Emotional customers connection11

How can employees contribute optimally to the successp y

The Success of Company

Emotional customer retention

Customer-oriented

Employees’ motivation

Extrinsic motivation Intrinsic motivation


Train for skills Hire for attitudes

Source: forum! Modell zum Einfluss der Motivation auf den Unternehmenserfolg

12

Motivation lead to Customer-orientedTo what extent do you agree the following statements of your activities?

I feel that personal responsibility to the customer’s satisfaction

I understand that the Salary come at last from customer

It is easy for me to put myself in the position of customer

I feel comfortable contact with customer

High motivated


Source:KundenstudieHandelsfilialen;Mitarbeitemotivationsindex auf einer Skalevom 0-keine Motivation bis 100- maximale Motivation

High motivatedLow motivated

13

Herzberg’s Two-Factor Theoryg y

Source: flatworldknowledge 2010


Expectancy Theory and Equity Theory -Employeesp y

Expectancy Theory –the process people use to

Equity Theory –individual’s perception of the process people use to

evaluate the likelihood their effort will yield the d i d t d h

individual s perception of fair and equitable treatment.

desired outcome and how much they want the outcome.


Goal-Setting Theory - Leadersg y• Goal: target, objective, or

result that someone triesresult that someone tries to accomplish.

• Goal-setting theory -g ypeople will be motivated to the extent to which they accept specificthey accept specific, challenging goals and receive feedback that i di t th iindicates their progress toward goal achievement.


Motivation as Business DriverMarket / Customer (outisde)

Profitability

Growth

C t

NewProducts &Innovation

Organization (inside)

Q ti

ServiceQuality

CustomerSatisfaction

Loyalty

Leadership

Strategy InternalProcesses

Questions of

employee survey

Attitude ofemployees

Behaviorof employees

Customer Relation

Careeropportunity

Growth driver employees

Performance/Feedback

Teamwork

Re at o

Empowerment

directleadership

Culturep

International Human Resources Management, Dr.

Jörg Klukas 17

Influences of Motivation

Increase/growth

F db k

Clear Expectation,

Responsi-bilities Values

Commitment

learn

FeedbackConsequences

Requirementsof Motivation

Targets and Tasks Confidence

encourage

CommitmentEngagement

TrustStrategy

fPerformance

Tech-orga. work

environment

Skills

Recognition, Promotion

Material Conse-quences

Performance(Results)

See and understand

resultsfair?

Satisfaction with Results and System

Skills, Knowledge

improve

learn


Emotions drive Motivation• you cannot motivate somebody• motivation can only be done by oneelf• motivation can only be done by oneelf• but, you can cause emotions and on that basis

motivations processes are initializedp

• employee motivates himself on the basis of id d i b h l dprovided emotions by the leader


Leading by Emotionsg y• understand inter-relational emotions processes as

drivers for internal motivations processesdrivers for internal motivations processes

• Leading by Command&Control• Leading by Objectives

L di b Vi i emotional• Leading by Vision level


Remember: Communication drives Emotions

Avoid Negative Emotions Achieve Positive EmotionsAvoid Negative Emotions Achieve Positive Emotions

PowerC t lLack of power

Los of control

ControlInfluenceFreedom

Self-determination

Contempt RecognitionAppreciationDepreciation

Ignorance

AppreciationStatusImage


REWARDS MANAGEMENTREWARDS MANAGEMENT


Shift in Jobs & Reward Systemsy• 1960s & ‘70s

• manual workers manual workers, • piece-rates/wage drift, • measured day work,

• incomes policies• 1980 & ‘90s

• service/knowledge workers, service/knowledge workers, • Performance Related Pay, • shares

2000• 2000s• Reward management,• Performance Related Pay, y• “Total Reward”

23International Human Resources Management,

Dr. Jörg Klukas

Objectives of Reward Managementj g• Support the organisation’s strategy• Recruit & retain• Recruit & retain• Motivate employees• Internal & external equityInternal & external equity• Strengthen psychological contract• Financially sustainable• Comply with legislation• Efficiently administered


Dr. Jörg Klukas

Basic Types of Reward

Source: http://www.wishfulthinking.co.uk/2008/12/09/balance/25


Reward from HR Excellence ProspectpBestPersAward

• how many of your employees have target agreements with financial consequencesconsequences

• The results of the performance evaluation are used what for: basic salary, variable compensation

• Do you have a Cafeteria-System (Employees choose salary Do you have a Cafeteria System (Employees choose salary components)

• Which components does your reward system have? retirement provisions, performance fee, company car, cell phone, employee discount, accident insurance

• …


Dr. Jörg Klukas

Reward from HR Excellence Prospectp

People Capability Maturity Model (PCMM)

Source: Carnegie Mellon University 2010


Dr. Jörg Klukas

Reward from HR Excellence ProspectpPeople Capability Maturity Model (PCMM)


Dr. Jörg Klukas

TOTAL REWARDTOTAL REWARD


Total Reward - Results• Differentiation from competitors regarding reward system• Support of culture of excellence and team building, which are

fundamental for the business• Long term connection of important competences through bonus

systems• Increasing company performance


Dr. Jörg Klukas

Total Reward – StakeholdersIntegrating important Stakeholders:• support of commitment to performance and engagement of

internal and external employees as stakeholders• support of the management as leading authority• the organization regarding economic efficiency• positioning on the job market as the Employer of Choice• negotiation with labor unions as a representative of the

employee• compliance with regulations and laws

organization job market

internal/external employee

legislator/lawmaker labor union

leadership


Dr. Jörg Klukas

Total Reward – Processes

Based on Processes:• Process: Strategy and Planning

• focusing of compensation tools on Human Capital Market• Analyzing market needs and expectations of employeers, applicants• Strategy as Attractive Employer and to bind people to your organizationSt ategy as tt act ve p oye a d to b d peop e to you o ga at o

• Process: Operational leadership • Use of Reward Approach for commitment to performance and engagement

of employees• Day to Day Leadership uses tools of rewards• Day to Day Leadership uses tools of rewards

• Process: Ensure value and learning • Use learning as a chance of non-financial compensation• Set up structured feedback possibilities for individuals and teams after

projects, services, or work-day• Process: Human Resources Management

• managing of reward tools and their processes• Monitor effectiveness of the variaous toolsMonitor effectiveness of the variaous tools• Manage and moderate fairness throughout the organization


Dr. Jörg Klukas

Total Reward – Elements

Indi idual monetar Team oriented

monetary

Individual monetary performance reward

are individually set up

Team-oriented monetary reward are valid for entire groups

tariff non-tarifftariff non-tariff

individualteam individualteam

Team-oriented and individual non-

t i tiCompany-wide Social-related Person-related

Incentives

monetary incentives

non-monetary33International Human Resources Management,

Dr. Jörg Klukas

Total Reward – Example monetary&inidividualyIndividual monetary performance reward are individually set up

C ti f

Increases Premiums for extraordinary achieve-

ments beyond wage

Compensation for “Available for Service”, “Night shifts”,

“Weekend work” (Rufbereitschaft)

Annual Salary Check (Gehalts-

überprüfungsprozess) Variable Salary acc. to reached targets (Variabler Anteil entsprechend Zielerreichung)

Increases acc. to risk responsibility

ments beyond wage agreements

M k i d b

On demand salary

up/downgrade by peer

(Variabler Anteil entsprechend Zielerreichung)

Market-oriented base pay acc. to wage agreement (Grundgehalt nach Tarif)

y passessment (Höher/ Herab-gruppierung)

tariff non-tariff34International Human Resources Management,

Dr. Jörg Klukas

Total Reward – Example monetary&teamyTeam-oriented monetary performance reward are valid for entire groups

Business car and business telephone for private use

Top Team of the Month for good performance in projects and services

Deutsche Telekom discount for devices and contracts

Business travel compensation beyond legal regulations

Continued pay for illness beyond legal regulations

Insurance for accidents for invalidity and death

Deferred Compensation as conversion of cash salary in pension with high

interests

Stock Options (Jubiläumsaktien)

Pension and Fond System (Altersvorsorge)

tariff non-tariff35International Human Resources Management,

Dr. Jörg Klukas

Total Reward – Example non-monetaryyTeam-oriented and individual non-monetary performance rewards Transparent career paths

for all positions at MMS Flexible working time

based on trust

Lived team-spirit as company culture

Management by objectives with team targets (Führen

Fastidious tasks Transparent individual

career path Further education by

Individual workplace set up by choosing computer, laptop, mobile, plants, paintings, etc. (A b i l l )

g (durch Ziele)

Open feedback culture by employee survey, project feedbacks, annual employee

lk j i

ytraining plan acc. to Blended Learning System and individual education contracts (e.g. for diploma, MBA PhD) C hi(Arbeitsplatzgestaltung)

Special leaves (Sonderurlaub)

Coffee/tea kitchen, Work-out room, massage service,

talk, project reviews Informal communication

through all hierarchy levels by email, telephone, news articles, workshops, etc.

MBA, PhD), Coaching Sabbatical, e.g. education

time out Flexible working hours by

part time contracts and out room, massage service, vaccination, parking spaces, bicycle room

articles, workshops, etc. Offsite meetings, works

outings, celebrations

part time contracts and alternating telecommuting

Individual feedback talks as annual employee and target agreement talks

Company-wide Social-related Person-relatedIncentives 36International Human Resources Management,

Dr. Jörg Klukas

Total Reward - Measuring Success (Controlling)( g)• differentiation from competitors regarding compensation system

• Applicants per job• fluctuation

• support of performance culture and team building, that are basics in our business• questions in the employee survey about team working• Evaluation of team work through customer survey• Number of TOP Team of the month

• long term engagement of important competences through appeal systems• Number of certificates• increase of company performance• value-added per person• average target fulfillment


Dr. Jörg Klukas

Reward – Internal CommunicationExample „ It does’t always have to be money“

• Excellent! Team of the month.• Negotiated! Use the discounts of the

for devices and contracts.

Paid!• Market oriented basic salary plus

variable compensation according to

p „ y y

for devices and contracts.• Awesome! Expenses for business trips

beyond regulations• Cured! Continued payment for illness

beyond regulations

variable compensation according to reached targets plus compensation for on-call duty plus bonus payments

• Tools: Annual salary check, Peer Assessments

More money for meMore money for the team

team-oriented financial

individualfinancial

Going strong! Support team spirit through joint activitiesDi id d! L di th h l F

Promoted! Transparent career options.R l i h d! Kit h fit

Motivated! Fascinating and challenging tasksF l t d! I di id l Divided! Leading through goals: From

BSC to unit-BSC until individual goals.Spoken! Open communication culture. Tools: Target conversations, Meetings, company‘s day out

Replenished! Kitchens fitness room massagesWorked! Flexible working time. Part time and remote work!

Formulated! Individual career, transparent path.Educated! Further education options(Blended Learning System) and individual education contracts(for promotion, MBA), Coaching.

company-wide fi i l

socialfi i l

individualfi i l

Meetings, company s day out

Celebrate in teamAdvantages for everyone

(for promotion, MBA), Coaching.Agreed! Employee feedback talks and appraisal interviews

non financial non-financial non-financialCelebrate in teamAdvantages for everyone


Contact me!Dr. Jörg Klukas• XING: https://www xing com/profile/Joerg KlukasXING: https://www.xing.com/profile/Joerg_Klukas• Facebook: http://www.facebook.com/home.php?#!/joerg.klukas• Slideshare: http://www.slideshare.net/pludoni• Twitter: http://twitter com/pludoniTwitter: http://twitter.com/pludoni• Email: [email protected]


Date post:	24-Jan-2015
Category:	Business
Upload:	pludoni-gmbh
View:	806 times
Download:	3 times