Post on 24-Jan-2015
description
3e People are rewarded,
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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
International Human Resources Management, Dr. Jörg Klukas
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
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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)
International Human Resources Management, Dr. Jörg Klukas 6
individuals and between teams. Total Rewards
MOTIVATIONMOTIVATION
International Human Resources Management, Dr. Jörg Klukas 7
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
International Human Resources Management, Dr. Jörg Klukas
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
International Human Resources Management, Dr. Jörg Klukas 10
Motivated Employees Connect with Their Customer
Employee motivation
index 86 pointsn Sa
les
Ret
urn
on
Employee i i
R
motivation index 46 points
International Human Resources Management, Dr. Jörg Klukas
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
International Human Resources Management, Dr. Jörg Klukas
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
International Human Resources Management, Dr. Jörg Klukas
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
International Human Resources Management, Dr. Jörg Klukas 14
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.
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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.
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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
International Human Resources Management, Dr. Jörg Klukas 18
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
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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
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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
International Human Resources Management, Dr. Jörg Klukas 21
REWARDS MANAGEMENTREWARDS MANAGEMENT
International Human Resources Management, Dr. Jörg Klukas 22
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
24International Human Resources Management,
Dr. Jörg Klukas
Basic Types of Reward
Source: http://www.wishfulthinking.co.uk/2008/12/09/balance/25
International Human Resources Management, Dr. Jörg Klukas
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
• …
26International Human Resources Management,
Dr. Jörg Klukas
Reward from HR Excellence Prospectp
People Capability Maturity Model (PCMM)
Source: Carnegie Mellon University 2010
27International Human Resources Management,
Dr. Jörg Klukas
Reward from HR Excellence ProspectpPeople Capability Maturity Model (PCMM)
28International Human Resources Management,
Dr. Jörg Klukas
TOTAL REWARDTOTAL REWARD
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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
30International Human Resources Management,
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
31International Human Resources Management,
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
32International Human Resources Management,
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
37International Human Resources Management,
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
International Human Resources Management, Dr. Jörg Klukas 38
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: joerg.klukas@pludoni.de
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