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250
200 150 100 50 3.19 0 2008-09 2009-10 2010-11 2011-12 CAGR 144.44 187.53 163.09 12.91 193.51
223.42
20
16
14.99
15.46
12 8 4 0
2012-13
Channel Partners
Research equipment manufacturers, Technology service providers, Retailers, Academicians & Universities
Customers
Patients, Drug marketing companies, Drug manufacturing companies, Govt. agencies, Doctors, etc.
Case Context
Key Pointers
Employee engagement score has improved
Performance Management system score - one of the dimension of Employee Engagement is below expectations PMS as standalone appreciated and acceptable
73 73
EES Score
78
52
48 47 Recommendations
Identifying Key 2013 focus areas
2011
2012
2011
2012
2013
Scores in %
Scores in %
Inculcating Performance Consistently low score Analysing Score the possible System with STAY Stark difference in PMS survey score Management 70 reasons for the lag in scores Employee Engagement 60 when conducted separately from EES 57 and proposing solutions 60 52 50 47 50 43 Employee Engagement surveyed 40 under 3 dimensions- Strive, Say &
30 Operationalizing Employee Engagement & Performance 20 Management System 10 0 2011 2012 Scores in % 2013
Employee Engagement
Definition: Aon Hewitt defines engagement as the state of emotional and intellectual involvement that motivates employees to do their best work.
Facts* Every 4 employees out of 10 are not engaged worldwide 80 % of the employees are engaged at a typical best employer Top 3 engagement drivers: Career opportunities, Recognition, and Organization reputation
About Engagement is the primary enabler of successful execution of any business strategy. Engagement is not a short-term initiative. Engagement must be driven from the top. No one impacts the state of engagement more than the employees immediate leader.
Measuring Employee Engagement Gallups G12 feedback system Gallup has identified the factors that determine whether people are actively engaged, disengaged, or actively disengaged.
High Engagement
Consistently High Levels of Performance Natural innovation and drive for efficiency
Low Engagement
Lost Productivity
Decreasing Employee Performance
* CBSR and Hewitt Associates , Engaging employees through CSR webinar, Jan 2010
Employee Engagement
Engagement Drivers Outcomes
Work Engagement
Behaviours
Is RPG LS capturing all these drivers in its EES Work Tasks Work Processes Resources Sense of Accomplishment
Engagement Drivers
Organizational Outcome
People
Response - High energy - Self starter - Intense work involvement Employee - Shows infectious Engagement enthusiasm - Goes the extra mile Better in-Role & Extra-Role Performance - Meets and exceeds Performance and Role Expectations - Inspire Others
- Sales Senior Leadership - Customer Manager satisfaction Co-workers - Productivity - Revenue Customers - Profitability
Higher/ Better
Is PMS at RPG LS in sync with its Employee Individual practices Variables Engagement
- Positive Self Esteem
Practices
Opportunities
Total Rewards
Individual Outcome
Performance Management
Aligning Objectives
Performance Culture
Performance Management Developing People
Rewards & Recognition
Every employee strives to give his best and wants to perform even better than he did in the previous years
Planning
Appraisal Purpose Performance Indicators Rating Process Rating Scales Feedback Mechanisms Communication Strategy Training Plan Implementation Strategy Evaluation Plan Assessment Tools & Delivery Plans
Performing
Key Determinant of Employee Engagement Designing the Performance Management process to foster Employee Engagement will lead to higher levels of performance Performance Management System: tool which helps employee to grow in their career accompanied with better benefits
*Only 3% of worldwide organizations say their overall Performance Management System is effective
*Mercer, Effective Performance Management, How do you measure up ? webcast, June 2013
Rewarding
Evaluating
Expected Behaviour
- Jointly setting goals - Helping employees understand how their work supports the overall company strategy and direction
Managers and employees set goals collaboratively, employees become more engaged
- Providing satisfactory amount of recognition - Providing feedbacks that help improve performance
Performance Management
Providing opportunities for training & support regarding career development: it fosters employee development and drive Employee Engagement
- Providing sufcient opportunities for training - Supporting career development efforts - Conducting career-planning discussions
Satisfying employees with the quality of appraisal discussions, particularly yearend appraisal discussions
Management style involving employees in decision making has positive effect on engagement
- Valuing ideas and opinions - Providing the resources and decision-making authority to perform effectively - Providing control over the quality of work
Measurement of Defining PMS Performance Management as part of Employee Engagement: Items for evaluating Performance Developing Management as a dimension Relevant and of Employee Engagement Valid Items are not properly defined or framed Performance Management Conducting while measured as Survey standalone, captured on different items than those used in Employee Engagement measurement
Analysis of PMS within EES
ImplementedPropagation Performance Management System not properly communicated to all the stakeholders Facilitating the Communicating
Training
use of the about the PMS Appraisers and Appraise system to its lacks clearand its understanding users as a about theimportance system pillar of Conducting Inadequate training Employee regular trainingresource available about Engagement about the the system upgradation of Two way and improper the system Ineffective feedback feedback system system enabling the required changes in the system
The programme for introducing Performance Management should take into account the fact that one of the main reasons why it fails is that either line managers are not interested, or they dont have the skills, or both Develop a Performance Review booklet providing criteria for Appraises, Appraisers and Reviewers to evaluate and differentiate between performance level with more conviction, more objective and complete SMART criteria by which objectives can be measured
Ensure the process is seen as a business one and not as an HR process Dont expect it to work quickly. It takes a few years to embed Performance Management in the organisations ethos
Ensure that Behavioral aspects of the performance are not overlooked due to the target based evaluation approach of the PMS
Hire motivated and capable employees; Provide ongoing training and development Relational contract, Long term orientation, stretch jobs that allow for adaptation 2 way involvement of individual & managers: Synergistic Cooperation Keep the context in perspective while goal setting
Consult, Involve & Communicate Align and ensure relevance to organizational/stakeholder needs Plan and prepare carefully Keep it simple Define performance expectations Ensure clear purpose and processes Align to culture and with other HR processes Be realistic about the scale and pace of change
Donts
Dos
Just make it a form- filling, intensive exercise Link to pay Neglect communication, consultation and training Provide training Assume managers have the skills required Blindly follow others Assume that everyone wants it
No connection As per Gallup The best workplaces give their to the big employees a sense of purpose, help them feel they picture belong and enable them to make difference No Empathy
Taking time to listen to employees
Low scores on stay dimension cannot be directly attributed to Performance Management system Impact of short comings in Performance Management system can be seen on Strive & Say also
Lack of Motivation
Absence of intrinsic motivation within employees
Development Establishing clear career paths, setting attainable Roadblocks stretch objectives and encouraging employees to
learn as much as possible
No Fun
Reinventing the work environments, blurring the line between work and play
* Forbes, Six Reasons Your Best Employees Quit 24th Jan 2013
Career Development
Designing Effective Career how Most Impact on Overall engagement: organization value their people, fit them into Development Plan future plans and provide growth opportunities
Setting Expectationsestablishing Stay dimension can be attributed to career Linking Compensation to Career clear progression requirements and Frameworkcan be part development for employees of, or guidelines to support job opportunities completely removed from, the movements, making sense for both organizations compensation Absence of clear career progression path strategy the employees capabilities as well as Matter of organizational philosophy the needs of theto organization leads exiting of employees
Components of Career Professional growth is critical to driving Development Plan engagement and retaining employees
Explicitly defined levels and step: job levels within and across functions should be developed in response to the organizations business needs are career paths that well
New learning & training opportunities : most desired form of recognition for engaged employees
Bring in stakeholder input- involve Showing the big picture- defines not key stakeholders, including affected just movement within or up a A mo u nt o f Devel o p ment employees, in the process function, but across the organization
Too little Just Right Too Much
Creating communicated and understood by employees is not something most companies do Function well. Even in the best-case - Specific competencies: critical scenario where managers are holding competencies should be highly specific to each function and predictive of high regular performanceperformance reviews with on the job their employee, employees often dont understand how to move either horizontally or vertically in an Assessment organization and calibration process: tools
4% 53%
5% 36%
5% 25%
5% 23%
43%
Build for the future- career framework should provide enough 72% 70% flexibility to adapt to changing 59% business needs
As humans, we are driven to grow, to learn, to become more than we are, and Progression guidelines: developing and that is especially true of top talent. communicating guidelines summarizing the
for assessing competency demonstration; implementation of review process fairly calibrating evaluations of competencies and performance so that expectations and standards are applied equitably
ENGAGED
CONTRIBUTING DISENGAGED
HOSTILE
Types of Employees
* Quantum Workplace, Employee Engagement: What Career Growth Opportunities Do Employees Want?, 10 th Oct, 2013
newly created career progressions within and across functions, addressing both performance and competency demonstration along with business needs
En-Talent
En-Leader
Ex-Pot
En-Young
Building a robust talent pipeline by evaluating readiness of employee for identified roles
EmployeeAhead
Leveraging fresh talent and start building and moulding from there on
EX - POTENTIAL
Managers to rate their direct reportees Questionnaire consisting of different parameters to measure potential To be carried out with PMS activity Mapping of scores on performance grid Managers to be trained for this task Communication to employees through workshops and presentations
Exceeds Expectations
Meets Expectations
Assigning of roles as per the mapping on potential grid thus exploiting full potential of the employees with varied kind of talents
Development Needed
EN- TALENT
Advanced Management courses International exposure Leadership development programs Corporate University programs
Job Shadowing, Coaching, Mentoring Hands on Training Behavioural Training Job rotation, Cross Functional exposure
Development Needed
Exceeds Expectations
Meets Expectations
Rigorous training program on functional competencies Training calendars to be designed for quarterly, halfyearly and yearly period
EN- LEADER
Identifying candidate for leadership development through Ex- Pot Allocating Mentor
Operational Features
For star performers 3 years in a row Growing leaders within the organization Step 1-3: Induction Phase Step 4-6: Empowerment Phase Mentor to play crucial role in developing leadership potential Candidate to get in touch with mentor on fortnightly basis Mentor shall also review the performance after each phase
Developing Priority Skills such as Self Esteem, Managing Self, Empathy, Values, Team building etc.
Leadership
Step 6: Leadership
Evaluation
Functional Stints
Assessment of each assignment Training programs or other interventions to bridge the skill gaps
Induction
Begins with on boarding process Opportunity to get familiarise with the group & business Functional Insights 2-3 weeks program
Role Allocation as per assessment scores and preference of the candidate Training programs focussing on Managerial/ Functional/Busine ss trainings