tag:blogger.com,1999:blog-33052139310091943262024-03-12T21:24:34.771-07:00The Other 2 ThirdsI have been working on helping individuals, teams and organizations to out-perform by emotionally connecting with them and helping them develop and grow. This can make people happier, improve their well-being and make them more productive, resulting in significant growth in revenue and profits of a business or improvement in the impact of an NGO. I am trying to condense my research and client experiences in an easy-to-read form of book with self-help tools for managers and leaders.Prashant Srivastavahttp://www.blogger.com/profile/05946535075753853234noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-3305213931009194326.post-73536565746966993042019-05-30T23:01:00.001-07:002019-05-30T23:01:42.722-07:00Prashant on HR Analytics at Aon Hewitt Best Employer Master Class<div dir="ltr" style="text-align: left;" trbidi="on">
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Prashant Srivastavahttp://www.blogger.com/profile/05946535075753853234noreply@blogger.com0tag:blogger.com,1999:blog-3305213931009194326.post-53133790415340107722019-05-30T22:56:00.000-07:002019-05-30T22:56:32.755-07:00Prashant in NASSCOM Seminar 2016 Practitioners' View<div dir="ltr" style="text-align: left;" trbidi="on">
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Prashant Srivastavahttp://www.blogger.com/profile/05946535075753853234noreply@blogger.com0tag:blogger.com,1999:blog-3305213931009194326.post-86969812424731353172019-03-14T12:34:00.000-07:002019-03-19T20:27:19.151-07:00 Hit The Ball and Place The Goal Post<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<h2 style="background: white; margin-left: 32.2pt; text-align: left; text-indent: -18pt; vertical-align: baseline;">
<span style="font-size: large;"> </span><span style="font-size: x-large;">Hit The Ball and Place The Goal Post</span></h2>
<h3 style="background: white; margin-left: 32.2pt; text-align: left; text-indent: -18pt; vertical-align: baseline;">
<span style="font-size: large;"> </span><span style="font-size: large;">Performance Management is the key to strategy implementation</span></h3>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
I was
dealing with a power generation company. The company had quoted a very low
price of power generated in the Government auction to win a mega power
generation project. The company was not able to achieve the efficiencies to be
profitable. The Chairman realized that the problem was with performance
management of the team. He wanted me to meet the CEO and CHRO to understand the
root cause of the problem and find a solution.</div>
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUUVKlLmJQKgo5qomS3w6sX7Dbi7x6OfhU9QWf5HFvxBBc2C2nyljdUIG4bwPQc9_hyksvhcGdwqu3yGlBw4Cmd2Z57H80lbPl3mbfQFvZSfmlJQ7n_T-8LWGH9KNNHr3XVyhq9davCQ0/s1600/jeffrey-f-lin-1437112-unsplash.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1067" data-original-width="1600" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUUVKlLmJQKgo5qomS3w6sX7Dbi7x6OfhU9QWf5HFvxBBc2C2nyljdUIG4bwPQc9_hyksvhcGdwqu3yGlBw4Cmd2Z57H80lbPl3mbfQFvZSfmlJQ7n_T-8LWGH9KNNHr3XVyhq9davCQ0/s320/jeffrey-f-lin-1437112-unsplash.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Photo by <a href="https://unsplash.com/photos/KaZKAoeHdao?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText" style="background-color: whitesmoke; box-sizing: border-box; color: #999999; font-family: -apple-system, BlinkMacSystemFont, "San Francisco", "Helvetica Neue", Helvetica, Ubuntu, Roboto, Noto, "Segoe UI", Arial, sans-serif; font-size: 14px; text-align: start; text-decoration-skip-ink: auto; transition: color 0.2s ease-in-out 0s, opacity 0.2s ease-in-out 0s; white-space: nowrap;">Jeffrey F Lin</a><span style="background-color: whitesmoke; color: #111111; font-family: , "blinkmacsystemfont" , "san francisco" , "helvetica neue" , "helvetica" , "ubuntu" , "roboto" , "noto" , "segoe ui" , "arial" , sans-serif; font-size: 14px; white-space: nowrap;"> on </span><a href="https://unsplash.com/@jeffreyflin?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText" style="background-color: whitesmoke; box-sizing: border-box; color: #999999; font-family: -apple-system, BlinkMacSystemFont, "San Francisco", "Helvetica Neue", Helvetica, Ubuntu, Roboto, Noto, "Segoe UI", Arial, sans-serif; font-size: 14px; text-align: start; text-decoration-skip-ink: auto; transition: color 0.2s ease-in-out 0s, opacity 0.2s ease-in-out 0s; white-space: nowrap;">Unsplash</a></td></tr>
</tbody></table>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
The next
morning I met Sanjeev, CHRO of the company for breakfast before meeting Srinivas,
the CEO. As we sipped the tea, I asked him, “What is the PLF (Plant Load Factor
– a measure of plant utilization in power plants)?”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Sanjeev:
“It is 60 to 70%. Srinivas will be able to tell you exactly”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME:
“What was the planned PLF when we quoted for the power tariff in the auction?”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Sanjeev:
“I don’t know. I am new to the system. We will need to check with Rao, the
CFO.”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME:
“What is the target of the plant head?”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Sanjeev:
“To run the plant efficiently and meet all O&M (Operations and Maintenance) </div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
parameters of the plant”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME: What
these parameters are and are they quantified?</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Sanjeev:
“We trust our top management. They know their job and they work accordingly.
How can we give them targets?”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME: “I
completely appreciate your point of view. How do you set the targets for the
middle management and front line team?”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Sanjeev:
“Please understand it is a process plant and not a sales organization. The
plant runs on its own. We have defined jobs of all the individuals. They do
their job.”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME: “How
do you assess their performance during appraisal”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Sanjeev:
“They do their self appraisal and write down what they have down during the
year. It is then assessed by their managers. We have a skip level assessment
system to eliminate manager baises.<span style="mso-spacerun: yes;"> </span>The
skip level manager assesses the performance. The proposed ratings are then
reviewed and moderated by the leadership team of the plant. We have a very robust
system.”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME: “Yes.
I can see that you have a very robust performance management system. How do you
assess the performance of the plant leadership team and the pant head?”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Sanjeev:
“The plant leadership team is assessed by the plant. He usually use his
judgement and there are no forms filled at this level. We trust his judgment.
For the plant head the rating is proposed by the CEO and moderated by the Vice
Chairman. I am not involved in this process.”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME: “Wonderful!!”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
By now
Srinivas had come to the office. Sanjeev and I walked into his office.</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME: “Hi
Srinivas, hope you had a good night sleep. ”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Srinivas:
“Boss I left at 1 am. That is usual. How do you expect me to have a good night
sleep.”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME: “Why
is that you have to work so late every day?”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Srinivas:
“Performance pressures. Our largest plant is not making money and we have
multiple reviews and new ideas every day.”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME:
“With all the reviews and ideas what is the PLF that you are able to achieve?”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Srinivas:
“We are at 67%.”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME:
“What is the planned PLF at which you will make profits and can sleep well?
(Smile) ”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Srinivas:
“Planned PLF is 95%.”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME: “I
am sure we have been able to identify what each individual in the plant
starting from the plant head to a shift engineer needs to do to achieve 95%
PLF.”</div>
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqph95T_jNQoQyzqNO34alv-h8-OG1ii6c8R1GaMyg9JhRjK0J-3YKEH5oum1euoMl8jF9iZra-DLVfZ4Bgzr7efW3Qg1HnYG_W_CMklrd0S4pbX_Y58DZbia78_l4bgiH6PVhIfe2Tek/s1600/jeffrey-f-lin-1436989-unsplash.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1067" data-original-width="1600" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqph95T_jNQoQyzqNO34alv-h8-OG1ii6c8R1GaMyg9JhRjK0J-3YKEH5oum1euoMl8jF9iZra-DLVfZ4Bgzr7efW3Qg1HnYG_W_CMklrd0S4pbX_Y58DZbia78_l4bgiH6PVhIfe2Tek/s320/jeffrey-f-lin-1436989-unsplash.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Photo by <a href="https://unsplash.com/photos/KaZKAoeHdao?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText" style="background-color: whitesmoke; box-sizing: border-box; color: #999999; font-family: -apple-system, BlinkMacSystemFont, "San Francisco", "Helvetica Neue", Helvetica, Ubuntu, Roboto, Noto, "Segoe UI", Arial, sans-serif; font-size: 14px; text-align: start; text-decoration-skip-ink: auto; transition: color 0.2s ease-in-out 0s, opacity 0.2s ease-in-out 0s; white-space: nowrap;">Jeffrey F Lin</a><span style="background-color: whitesmoke; color: #111111; font-family: , "blinkmacsystemfont" , "san francisco" , "helvetica neue" , "helvetica" , "ubuntu" , "roboto" , "noto" , "segoe ui" , "arial" , sans-serif; font-size: 14px; white-space: nowrap;"> on </span><a href="https://unsplash.com/@jeffreyflin?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText" style="background-color: whitesmoke; box-sizing: border-box; color: #999999; font-family: -apple-system, BlinkMacSystemFont, "San Francisco", "Helvetica Neue", Helvetica, Ubuntu, Roboto, Noto, "Segoe UI", Arial, sans-serif; font-size: 14px; text-align: start; text-decoration-skip-ink: auto; transition: color 0.2s ease-in-out 0s, opacity 0.2s ease-in-out 0s; white-space: nowrap;">Unsplash</a></td></tr>
</tbody></table>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Srinivas:
“Well! Broadly yes. But if you are asking me that is it quantified and put in
the goal sheets of people? Then NO. Despite my repeated insistence Sanjeev and
Rajesh (Plant Head) have not done it. But this may still not solve the problem.
The best plant in the world has achieved a PLF of 88%. At this price we will
never make profits. We need to do something about the price.”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME: “Well!
Can we at least achieve 88% PLF and cut our losses? The rest you may try to
bridge with the price negotiation.”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Srinivas:
“That sounds like a plan. You think if we do a proper goal setting and we
measure <span style="background-color: transparent;">people performance against the goals, we will improve our PLF from from
67% to 88%?”</span></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
ME: “Yes
definitely! (Smile). As long as Rajesh and you know what should you do to reach
a PLF of<span style="mso-spacerun: yes;"> </span>88%. Considering that Rajesh,
Rao, and other leaders along with you had visitied the Chinese plant achieving
88% PLF, I believe that knowledge exists.”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
Srinivas:
“Yes! (Smiles)”</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgN1bSQNO7OUSe8hprAO6fjKBXErEos15V4WluWp-pHq-RgU3D3GozaItvin4JtqMUfyvtk4AP00oi_1uNUELMzjNDiucK38o1r9q38_GruM4Ao7BDs5HcoyMGJF0g-NxwFei-PAdOpCOg/s1600/vlad-kutepov-1370063-unsplash.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1200" data-original-width="1600" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgN1bSQNO7OUSe8hprAO6fjKBXErEos15V4WluWp-pHq-RgU3D3GozaItvin4JtqMUfyvtk4AP00oi_1uNUELMzjNDiucK38o1r9q38_GruM4Ao7BDs5HcoyMGJF0g-NxwFei-PAdOpCOg/s320/vlad-kutepov-1370063-unsplash.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Photo by <a href="https://unsplash.com/photos/ePAnnoAmOjo?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText" style="background-color: whitesmoke; box-sizing: border-box; color: #999999; font-family: -apple-system, BlinkMacSystemFont, "San Francisco", "Helvetica Neue", Helvetica, Ubuntu, Roboto, Noto, "Segoe UI", Arial, sans-serif; font-size: 14px; text-align: start; text-decoration-skip-ink: auto; transition: color 0.2s ease-in-out 0s, opacity 0.2s ease-in-out 0s; white-space: nowrap;">Vlad Kutepov</a><span style="background-color: whitesmoke; color: #111111; font-family: , "blinkmacsystemfont" , "san francisco" , "helvetica neue" , "helvetica" , "ubuntu" , "roboto" , "noto" , "segoe ui" , "arial" , sans-serif; font-size: 14px; white-space: nowrap;"> on </span><a href="https://unsplash.com/search/photos/efficeint-power-plant?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText" style="background-color: whitesmoke; box-sizing: border-box; color: #999999; font-family: -apple-system, BlinkMacSystemFont, "San Francisco", "Helvetica Neue", Helvetica, Ubuntu, Roboto, Noto, "Segoe UI", Arial, sans-serif; font-size: 14px; text-align: start; text-decoration-skip-ink: auto; transition: color 0.2s ease-in-out 0s, opacity 0.2s ease-in-out 0s; white-space: nowrap;">Unsplash</a></td></tr>
</tbody></table>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
We concluded
the discussion and moved out of his office. </div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
I
thought this business was hitting the ball in any direction and placing the
goal post around the point the ball crossed the boundary and called it a goal.
So they achieved what could be achieved with some random motion. No wonder they were making such hefty losses and the CEO, Vice Chairman and Chairman are having
sleepless nights.</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
I worked
with Sanjeev, Rajesh and Rao to set the goals and cascade them to the last
mile. Eventually Rao took over as the CEO of the plant and introduced a
monthly review process.</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
In India
at least 50% organizations do not have goal setting. It exists only in manuals.
People are encouraged to perform their jobs. At the end of the year the
achievements of people become goals leading to significantly lower performance.
Everyone is rated as high performer and paid out near equal increments and
bonuses. This encourages people to do less in the following year and still be
rated as high performer, as there is no incentive to out-perform.</div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<br /></div>
<div style="background: white; margin-left: 32.2pt; vertical-align: baseline;">
<span style="font-family: "calibri" , "sans-serif"; font-size: 11.0pt; line-height: 107%; position: relative; top: -0.5pt;">© Prashant Srivastava. All rights reserved.</span></div>
</div>
Prashant Srivastavahttp://www.blogger.com/profile/05946535075753853234noreply@blogger.com0tag:blogger.com,1999:blog-3305213931009194326.post-80186658372940693442018-05-31T01:47:00.000-07:002018-08-20T23:37:57.593-07:00Engage Employees Part 5: Pay fairly and engage employees<div dir="ltr" style="text-align: left;" trbidi="on"><span style="text-align: justify;"><span style="font-size: 12pt;">I wrote: <a href="http://srivastavaprashant.blogspot.com/2015/12/pay-more-and-disengage-employees_29.htm" target="_blank">Pay More and Disengage </a></span><a href="http://srivastavaprashant.blogspot.com/2015/12/pay-more-and-disengage-employees_29.htm" target="_blank">Pay More and Disengage Employees</a><span style="font-size: 12pt;">. sometime back. </span></span><span style="font-size: 12pt; text-align: justify;">Does this mean we should pay less or we should not pay more? </span><b style="font-size: 12pt; text-align: justify;">NO, </b><span style="font-size: 12pt; text-align: justify;">please consider the following:</span><br /><b style="text-align: justify; text-indent: -18pt;"><span style="font-size: 12.0pt; line-height: 115%;"><br /></span></b><b style="text-align: justify; text-indent: -18pt;"><span style="font-size: 12.0pt; line-height: 115%;">1. Pay Enough:</span></b><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -18pt;">Dan Pink says that while money or monetary rewards did not result in engagement or in high performance, businesses should pay enough to get the pay discussion off the table and help people to focus on performance.</span><br /><b style="text-align: justify; text-indent: -18pt;"><span style="font-size: 12.0pt; line-height: 115%;"><br /></span></b><span style="text-align: justify; text-indent: -18pt;"><span style="font-size: 12pt; line-height: 115%;"><b>2. Pay More and Engage:</b></span></span><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -18pt;"> One of the largest companies in social media pays the highest salary in the industry. The employees are highly engaged. However, they do not want people to join them for money. They want people to join them for freedom to innovate, empowerment and freedom to perform. They take care of their employees by providing best of the facilities at work, to the extent that the employees do not miss their homes.</span><br /><b style="text-align: justify; text-indent: -18pt;"><span style="font-size: 12.0pt; line-height: 115%;"><br /></span></b><span style="text-align: justify; text-indent: -18pt;"><span style="font-size: 12pt; line-height: 115%;"><b>3. Pay as Per Promise:</b></span></span><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -18pt;"> Organizations need to set expectations and pay as per promise. If the organization does not keep its promise it will surely disengage its employees.</span><br /><b style="text-align: justify; text-indent: -18pt;"><span style="font-size: 12.0pt; line-height: 115%;"><br /></span></b><b style="text-align: justify; text-indent: -18pt;"><span style="font-size: 12.0pt; line-height: 115%;">4. Pay Fairly:</span></b><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -18pt;">Organizations must ensure fairness in compensation both internally and externally. Within the organization compensation should be fairly paid based on performance of an individual and her contribution to organization’s success. Both the performance management and the compensation management should be as transparent as possible. If we have a robust performance management system driven by business, it would be easy to be fair and transparent.<span style="mso-spacerun: yes;"> </span>In the absence of organizational transparency grapevine takes over. </span><br /><br /><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%;">In a socially connected world, the compensation should be benchmarked with companies from where the organization hires talent and with the companies to whom it loses talent. This should also be transparent to the extent possible.<span style="mso-spacerun: yes;"> </span>Transparency will ensure that people understand the fact that they are paid well and in line with the organizational promise, which will minimize the impact of misguidance by social network.</span><br /><span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%;"><b style="text-indent: -18pt;"><span style="font-size: 12pt; line-height: 18.4px;">5. Take Recourse to Total Rewards:</span></b><span style="font-size: 12pt; line-height: 18.4px; text-indent: -18pt;"> The software company that paid less and retained and engaged employees in the example above, ensured that they took good care of their employees and avoided retrenching them during down turn. That is not to say that the non performers were not asked to leave, after giving them a fair chance to change. The total perceived rewards, therefore, were higher than those due to higher salary paid by competitors.</span></span><br /><span style="font-size: 12.0pt; line-height: 115%;"><br /></span><span style="font-size: 12.0pt; line-height: 115%;">Therefore,<b style="mso-bidi-font-weight: normal;"> pay</b> <b style="mso-bidi-font-weight: normal;">enough, pay fairly and migrate to total rewards. And yes, fulfil your promise</b>. This will ensure that you do not disengage employees.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; text-align: justify;"><br /></div><br /></div>Prashant Srivastavahttp://www.blogger.com/profile/05946535075753853234noreply@blogger.com0tag:blogger.com,1999:blog-3305213931009194326.post-79549557454476657472016-01-09T02:52:00.000-08:002018-08-20T23:37:58.237-07:00Engage Employees Part 4: Is PMS Rating a Tool to Engage and Retain People?<div dir="ltr" style="text-align: left;" trbidi="on"><div align="center" class="MsoNormal" style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixp7E3lL-tkWna46i43rqRz9_NgGwFJM9QPIGZCT1c5MyaX00pWRCJmN6MHxr1xEfFDiCFCKKfVt-PuMNx4C0HXAlutQWWsQD34-t6NBz1ZX3PKZcoto8ReUYXSJlLcXCtGEOYY82XRb2n/s1600/Performance+rating+eremediadot+com.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixp7E3lL-tkWna46i43rqRz9_NgGwFJM9QPIGZCT1c5MyaX00pWRCJmN6MHxr1xEfFDiCFCKKfVt-PuMNx4C0HXAlutQWWsQD34-t6NBz1ZX3PKZcoto8ReUYXSJlLcXCtGEOYY82XRb2n/s1600/Performance+rating+eremediadot+com.jpg" /></a></div><div align="center" class="MsoNormal" style="text-align: center;"><br /></div><div align="center" class="MsoNormal" style="text-align: center;"><span style="font-size: xx-small;">Photo: Courtesy eremedia.com</span></div><div align="center" class="MsoNormal" style="text-align: center;"><span style="text-align: left;"><br /></span></div><div class="MsoNormal">In one of the earlier posts “Is Socialism at Work Killing business?”, I saw several comments why this was good in theory and how in practice when there was a war for talent it was almost impossible to differentiate. This reminded me of several situations when my clients wanted to be liberal with ratings in order to engage employees and retain them.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">Let us examine some facts and situations:</div><div class="MsoNormal"><br /></div><div class="MsoNormal">1. Positive Impact of PMS Rating on Engagement</div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;">In several client organizations we had observed that performance ratings had a positive (or negative) impact for 6 to 8 weeks only. After this period people were back to the same level of engagement (or disengagement) as that before the ratings. The attrition was postponed by a few months or at best by a year. If the latter happened, HR achieved its goals of lowering attrition and so did the line mangers. But were these people productive? No, they were not productive. From a shareholders perspective and from a customer perspective they did not deliver as well as they ought to have delivered. </div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><br /></div><div class="MsoNormal">2. PMS Rating and Attrition</div><div class="MsoNormal"><br /></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;">In another analysis we found that the attrition had no correlation with the undeserved high ratings. If people were disengaged and had a better opportunity with another organization, they would leave even if they were given a rating higher than that they deserved. However, if they were mediocre and could not find a job they would continue with the business. If they were people managers, they epitomized felicitation of non-performance leading to disengagement and mediocrity in the team. </div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><br /></div><div class="MsoNormal">3. PMS Rating, Performance and Attrition – A Case Study</div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;">In one of the consulting firms, PMS rating was rampantly used as a lever to engage employees and retain them. This led to a culture of work avoidance leading to an inefficient, non-responsive and loss making firm, despite having the best of the talent in the industry. There was no incentive to perform. In fact they reached a situation where team members, who were fresh from institutes and those with up to 5 years of experience, worked the hardest. Most of the Project Managers, Directors and even Partners were busy managing their managers rather than managing their performance or adding value to their clients or to their teams. There was a profound belief amongst people that they needed to work hard for the first 3-5 years till they were promoted to Project Manager level. They felt after becoming a Project Manager life was “cool” and there was no need to work.</div><div class="MsoNormal" style="margin-left: 14.2pt;"><br /></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;">Any business in any industry and in almost any country had to work really hard to make losses in 2005-07 period. This firm made it happen despite the best talent they employed and a great brand name they had. This is the far reaching consequence of using performance rating as a tool to solve the problems in the short term. </div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;">Did they manage to engage and retain employees with all the frivolous ratings that they came handed out? I understand that their engagement scores were in bottom quartile and their attrition was the highest in the industry.</div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;">With reducing lives of leaders and HR professionals in any organization, the focus on solving the problems in the short term is significantly high. Taking tough calls, even if we lose some good talent, becomes difficult if the long term orientation is missing. We can’t blame our fellow leaders in the industry and our HR fraternity as short term-ism is a global phenomenon. But the benefit of an undeserved performance rating is just too short to merit a consideration even in this world of short term-ism.</div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;">Now, if pay (Post: Pay More and Disengage Employees), promotion (Post: Promote and Part), and performance ratings do not lead to engagement, what engages employees? </div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;">Let us discuss "what engages employees?" next week.</div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-left: 14.2pt;"><br /></div><div class="MsoNormal"><br /></div><div class="MsoNormal"><br /></div><div class="MsoNormal"><br /></div><br /><div class="MsoNormal"><br /></div></div>Prashant Srivastavahttp://www.blogger.com/profile/05946535075753853234noreply@blogger.com0tag:blogger.com,1999:blog-3305213931009194326.post-20999104454322121482015-12-29T05:53:00.000-08:002018-08-20T23:37:58.743-07:00Engage Employees Part 3: Promote and Part<div dir="ltr" style="text-align: left;" trbidi="on"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYuODKiLS5XJmS8Dwt-QBaCZDFzYMuw7sjkjO2K8zvuvMD984aL0aLu5sZMMyJ0cDxbLgjdnVDCx1MkRuzoEqIAl5yzPOX3z2nK_8pXhzG6WOXr7gPN6VVy1D_23nxvkwZ2-zNcYSj8AT7/s1600/Promote+and+Part+-+memegeneratordotnet.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYuODKiLS5XJmS8Dwt-QBaCZDFzYMuw7sjkjO2K8zvuvMD984aL0aLu5sZMMyJ0cDxbLgjdnVDCx1MkRuzoEqIAl5yzPOX3z2nK_8pXhzG6WOXr7gPN6VVy1D_23nxvkwZ2-zNcYSj8AT7/s1600/Promote+and+Part+-+memegeneratordotnet.jpg" /></a></div><div class="MsoNormal"><span style="font-size: 12pt; line-height: 115%;"><br /></span></div><div class="MsoNormal"><span style="font-size: 12pt; line-height: 115%;">In the last post we discussed about “pay more and disengage”. Now, let us consider can we use promotion as a tool to engage employees?</span></div><div class="MsoNormal"><span style="font-size: 12pt; line-height: 115%;"><br /></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Let us consider the following:<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">1. Promote and Disengage Employees: <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div><div class="MsoNormal" style="margin-left: 14.2pt; tab-stops: 14.2pt; text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">A Communication and technology client during my consulting days positioned careers as a differentiator. While the company was growing at a rapid stride, it was easy to promote people and provide larger roles. As the growth slowed down, promotions led to change in designation and compensation without a material change in role. We observed that all those promoted without a role change demonstrated an increase in engagement for a year and then the engagement dipped even below the level of engagement before the promotion. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">2. Promote beyond the level of Incompetence<o:p></o:p></span></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">This was more than a decade ago. One of my team members was very high performer and was a high potential. But we strongly felt that he was not ready for the next role. However, he threatened to resign and we did not want to lose him. We promoted him. In about a year’s time he resigned. When I called him to discuss the reasons, he said that he resigned because he was promoted. I insisted that he told me more. He said that a year ago he felt wanted by the firm, loved by the team members and respected by the clients. With the promotion the expectations from all the three stakeholders changed dramatically and he found it difficult to meet the new set of expectations. Therefore, he felt that none of the stakeholders respected him any longer. He felt he was in a fix as he could not request us to demote him. After that episode I preferred to lose people rather than promote them, as that would eventually lead to a loss in any case.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">3. Promote and Sack People<o:p></o:p></span></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">As in example 1 above, another client promoted people leading to higher salaries and better designation, without a role change. This did not give people an opportunity to increase their value add to the organization. In turn, they did not add value to themselves. When the market stagnated as these employees did not add value concomitant to their hierarchy and the compensation they received they were the first ones to be asked to go. As they did not add value to themselves, they did not find an appropriate job in the market. They had to settle for less, impacting their self esteem.<o:p></o:p></span></div><div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">So, those who thought that they can use promotion as a tool to engage and retain employees could be up for a rude shock. You may end up disengaging employees, exiting them and impacting their self esteem for a long time.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Even while they stay, they stay disengaged. They do not help the business.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Should you then not promote? You should definitely promote. Promotions should be based on:<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">1. Performance and Potential<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">2. Availability of a bigger role<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">3. Readiness for the role. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Such promotions will engage employees who are promoted and motivate others to strive harder. This would be good for people and good for business. Therefore, this would be sustainable, even if you lose a few in the bargain. </span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div><div class="MsoNormal"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">If Pay and promotion should not be used as tools to engage and retain employees, should PMS be used as a tool to engage employees? Let us discuss next week.</span></div><div class="MsoNormal"><br /></div><div class="MsoNormal"><br /></div><div class="MsoNormal"><br /></div><br /><div class="MsoNormal"><br /></div></div>Prashant Srivastavahttp://www.blogger.com/profile/05946535075753853234noreply@blogger.com0tag:blogger.com,1999:blog-3305213931009194326.post-34872477857332064562015-12-29T05:30:00.000-08:002018-08-20T23:37:59.248-07:00Engage Employees Part 2: Pay More and Disengage Employees<div dir="ltr" style="text-align: left;" trbidi="on"><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: left;"><span style="font-size: 12pt; line-height: 115%; text-align: justify;">We hear frequently, from business leaders as well as HR leaders, that we should pay more and we will be able to engage employees. Alternatively we can’t engage employees because we can’t pay enough.</span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%;">Let us examine the following examples and situations:<o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; text-align: justify;"><br /></div><div class="MsoListParagraph" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">1.<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;">Pay More and Disengage employees:</span></b><span style="font-size: 12.0pt; line-height: 115%;"> A multinational bank paid its employees significantly higher than its peers. But it failed to provide challenging work and consequently could not ensure development and growth. The employees were disengaged. They could not get jobs with other banks as their compensation could not be matched. This resulted in a pool of frustrated employees who did not service customers well. Eventually it translated into accelerated non performance of business leading to lack of challenging work and development. So golden hand cuffs created a vicious cycle. <o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;"><br /></div><div class="MsoListParagraphCxSpFirst" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">2.<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;">Pay Less and Engage Employees: </span></b><span style="font-size: 12.0pt; line-height: 115%;"> One of the largest software services companies in India is known to pay the lowest salary amongst its peers. It always had the lowest attrition and the highest engagement. While in the short run some of the peers did well, over a larger horizon it outperformed its peers.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto;"><br /></div><div class="MsoListParagraphCxSpMiddle" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">3.<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;">ESOP a Golden Hand cuff</span></b><span style="font-size: 12.0pt; line-height: 115%;">: A well known player in communication and technology had a serious challenge in engaging its leadership team. The CEO asked me if they were so disengaged and that too perennially, why they didn’t leave. The answer was staring at his face – how can they leave such hefty ESOPs and go? A disengaged leadership team could be disruptive for business.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto;"><br /></div><div class="MsoListParagraphCxSpMiddle" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">4.<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;">Can’t afford to pay. So can’t Engage</span></b><span style="font-size: 12.0pt; line-height: 115%;">: The research by almost all consulting firms show that the engagement went up in more than two thirds of the companies in 2008 and 2009, when companies could not pay well. Employees did understand the predicament of employers and responded positively, wherever leadership was receptive and demonstrated care.<o:p></o:p></span></div><div class="MsoListParagraphCxSpLast" style="margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto;"><br /></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%;">Does this mean we should pay less or we should not pay more? <b>NO, </b>please consider the following:<o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; text-align: justify;"><br /></div><div class="MsoListParagraph" style="margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">1.<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> 1. </span></span><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;">Pay Enough:</span></b><span style="font-size: 12.0pt; line-height: 115%;">Dan Pink says that while money or monetary rewards did not result in engagement or in high performance, pay enough to get the pay discussion off the table and help people to focus on performance.<o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; text-align: justify;"><br /></div><div class="MsoListParagraph" style="margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">2.<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> 2. </span></span><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;">Pay More and Engage:</span></b><span style="font-size: 12.0pt; line-height: 115%;"> One of the largest companies in social media pays the highest salary in the industry. The employees are highly engaged. However, they do not want people to join them for money. They want people to join them for freedom to innovate, empowerment and freedom to perform. They take care of their employees by providing best of the facilities at work, to the extent that the employees do not miss their homes.<o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; text-align: justify;"><br /></div><div class="MsoListParagraphCxSpFirst" style="margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">3.<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> 3. </span></span><b><span style="font-size: 12.0pt; line-height: 115%;">Pay as Per Promise:</span></b><span style="font-size: 12.0pt; line-height: 115%;"> Organizations need to set expectations and pay as per promise. If the organization does not keep its promise it will surely disengage its employees.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto;"><br /></div><div class="MsoListParagraphCxSpLast" style="margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">4.<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> 4. </span></span><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;">Pay Fairly:</span></b><span style="font-size: 12.0pt; line-height: 115%;">Organizations must ensure fairness in compensation both internally and externally. Within the organization compensation should be fairly paid based on performance of an individual and her contribution to organization’s success. Both the performance management and the compensation management should be as transparent as possible. If we have a robust performance management system driven by business, as discussed in one of the earlier posts, it would be easy to be fair and transparent. In the absence of organizational transparency grapevine takes over. <o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; text-align: justify;"><span style="font-size: 12.0pt; line-height: 115%;">In a socially connected world, the compensation should be benchmarked with companies from where the organization hires talent and with the companies to whom it loses talent. This should also be transparent to the extent possible. Transparency will ensure that people understand the fact that they are paid well and in line with the organizational promise, which will minimize the impact of misguidance by social network. <o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; text-align: justify;"><br /></div><div class="MsoListParagraph" style="margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">5.<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> 5. </span></span><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;">Take Recourse to Total Rewards:</span></b><span style="font-size: 12.0pt; line-height: 115%;"> The software company that paid less and retained and engaged employees in the example above, ensured that they took good care of their employees and avoided retrenching them during down turn. The total perceived rewards, therefore, were higher than those due to higher salary paid by competitors.<o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; text-align: justify;"><span style="color: #4f81bd; font-size: 12.0pt; line-height: 115%;">Therefore,<b> pay</b><b>enough, pay fairly and migrate to total rewards. And yes, fulfil your promise</b>. This will ensure that you do not disengage employees. <o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; text-align: justify;"><span style="color: #00b050; font-size: 12.0pt; line-height: 115%;">However, you will have to do very different things to ensure engagement. We will discuss how to engage various subsets of employees in subsequent posts over the next few weeks.<o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm;"><br /></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm;"><br /></div><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm;"><br /></div><br /><div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0cm; tab-stops: 89.25pt;"><span style="font-size: 12.0pt; line-height: 115%;"> <o:p></o:p></span></div></div>Prashant Srivastavahttp://www.blogger.com/profile/05946535075753853234noreply@blogger.com0tag:blogger.com,1999:blog-3305213931009194326.post-79163256607629086962015-12-20T04:49:00.000-08:002018-08-20T23:37:59.756-07:00Engage Employees Part 1: Why engage employees? Just stay focussed on business.<div dir="ltr" style="text-align: left;" trbidi="on"><div class="MsoNormal" style="text-align: justify;">I have been seeing significant discussion on employee engagement and the futility of it. I completely agree with all those who think we should not engage employees and instead stay focussed on business.</div><div class="MsoNormal" style="text-align: justify;"><br /></div><div class="MsoNormal" style="text-align: justify;">I recall meeting the Managing Director of a large cement manufacturing company during my consulting days, who told me that cement was produced by kilns and not people. He told me that investing in employee engagement was good for businesses where factor of production was people- typically service industry. I told him that I completely agreed with him and requested him to educate me if he had patented kilns that his competitors did not have access to. I further asked him if that was the reason- his company was making huge profits while the others were not. He went on to explain to me that the kilns were manufactured by four companies in the world and all the cement manufacturers had similar kilns. He further explained that kilns ran on their own for 300 days and at that level of production plants made a loss while at 345 days of production plants became highly profitable. On asking him if all the plants of his company were operating at 345 days, he answered in the negative. When I wanted to know the difference between high performing plants compared to others, he told me it was people. He further said that while they hired people with similar qualifications and experience, the motivation levels and passion, especially of plant leadership team, made the big difference. Needless to say that he went ahead with a program to engage employees, including leaders. The employee engagement program was a result of MD’s focus on business and to ensure consistent and sustained plant performance.</div><div class="MsoNormal" style="text-align: justify;"><br /></div><div class="MsoNormal" style="text-align: justify;">Clearly, there has to be a business reason to engage employees. We should remember that hr is owned by business and not by HR. Therefore any intervention that does not address business issues will not stick.</div><div class="MsoNormal" style="text-align: justify;"><br /></div><div class="MsoNormal" style="text-align: justify;">As we discussed in earlier posts, PMS is a business tool and differentiation is key to high performing organization. At the same time this could generate significant heat and friction between the employees and leaders; and leaders and the board representing the shareholders interest. This calls for some cushioning effect to convert the friction into passion and motivation which will help sustain high performance over a long time. Employee engagement provides the cushioning effect. </div><div class="MsoNormal" style="text-align: justify;"><br /></div><div class="MsoNormal" style="text-align: justify;">There is enough debate on whether business performance is correlated with employee engagement or which one is a lead factor and which one is a lag factor. But there is enough research and experience to demonstrate that engagement is a lead factor and performance is a lag factor.</div><div class="MsoNormal" style="text-align: justify;"><br /></div><div class="MsoNormal" style="text-align: justify;">If a bottleneck in business can be identified, quantifying the business benefit of employee engagement becomes easier.</div><br /><div class="MsoNormal" style="text-align: justify;"><br /></div><div class="MsoNormal" style="text-align: justify;">A word of caution: Engagement without strong performance management could lead to a country club culture. Engagement does not mean keeping employees happy, it means keeping employees motivated and passionate about work. </div></div>Prashant Srivastavahttp://www.blogger.com/profile/05946535075753853234noreply@blogger.com0tag:blogger.com,1999:blog-3305213931009194326.post-47644781346404288502015-12-12T05:03:00.000-08:002018-08-20T23:38:00.297-07:00Business and HR Part 2: Never have a PMS process for people<div dir="ltr" style="text-align: left;" trbidi="on"><h2 style="text-align: justify;"><span style="font-family: "cambria" , serif;">Performance Management System or PMS is believed to be an HR process to evaluate people’s performance in order to reward people, decide on increments, variable pay and promotions.</span><span style="font-family: "cambria" , serif;"> </span><span style="font-family: "cambria" , serif;">Therefore,</span><span style="font-family: "cambria" , serif;"> </span><span style="font-family: "cambria" , serif;">line managers see it as additional work.</span><span style="font-family: "cambria" , serif;"> </span><span style="font-family: "cambria" , serif;">One hears a usual rhetoric, “Should I do my business or should I spend time on completing PMS on the HRMS or discuss performance with team”. </span><span style="font-family: "cambria" , serif;">I would strongly suggest that line managers should not waste time if PMS is for people.</span><span style="font-family: "cambria" , serif;"> </span><span style="font-family: "cambria" , serif;">They should stay focused on business.</span><span style="font-family: "cambria" , serif;"> </span></h2><div class="MsoNormal" style="text-align: justify;"><br /></div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , "serif";">However, imagine a situation where an organization employs 5000 people. Can a CEO do everything to achieve his Objectives? Or can the ten people in the leadership team do everything to achieve their or CEO’s objectives? On the contrary while the leadership can provide direction, the real work is done by 4500 people at the bottom of the pyramid – salesmen, production engineer, maintenance engineer, bank teller etc. Unless their objectives are aligned with objectives of the CEO, CEO cannot deliver on the expectations of shareholder.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;"><br /></span></div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;">A.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;">How does an organization align the entire organization with the objective of a CEO?</span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "cambria" , serif;"><br /></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "cambria" , serif;">PMS is the tool to align the organization with the objectives of the CEO. Therefore PMS is primarily a business tool and it may also provide inputs for various HR processes.</span></div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;"><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"><br /></span></span></div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;"><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"><br /></span></span></div><div class="MsoNormal" style="text-align: justify; text-indent: 0px;"><span lang="EN-US" style="text-indent: -18pt;"><span style="font-stretch: normal;"><span style="font-family: "cambria" , serif;">B. </span></span><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;">How does business leadership effectively use PMS to help CEO deliver on his objective?</span></div><div class="MsoNormal" style="text-align: justify; text-indent: 0px;"><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;"><br /></span></div><div class="MsoNormal" style="text-align: justify; text-indent: 0px;"><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;">1.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;">Own: Business leadership should own and drive PMS process.</span></div><div class="MsoNormal" style="text-align: justify; text-indent: 0px;"><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;">2.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;">Cascade: While everyone knows the importance of cascading the CEO objective through PMS, it is usually executed well in sales driven organizations. The other businesses struggle quite a lot to effectively cascade the objectives.</span></div><div class="MsoNormal" style="text-align: justify; text-indent: 0px;"><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;">3.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;">Helping people deliver: Having set the goals, aligned with organization, line managers have to constantly help their team members deliver by:</span></div><div class="MsoNormal" style="text-align: justify; text-indent: 0px;"><span lang="EN-US" style="font-family: "cambria" , serif; text-indent: -18pt;"><br /></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 108.0pt; mso-add-space: auto; mso-list: l0 level2 lfo2; mso-text-indent-alt: -18.0pt; text-align: justify; text-indent: -108.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span>i.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Providing Constant feedback<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 108.0pt; mso-add-space: auto; mso-list: l0 level2 lfo2; mso-text-indent-alt: -18.0pt; text-align: justify; text-indent: -108.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span>ii.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Coaching them on course correction<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 108.0pt; mso-add-space: auto; mso-list: l0 level2 lfo2; mso-text-indent-alt: -18.0pt; text-align: justify; text-indent: -108.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span>iii.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Demonstrating how to execute, where needed<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 72.0pt; mso-add-space: auto; text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , "serif";"><br /></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 72.0pt; mso-add-space: auto; text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , "serif";">Obviously this is again something line managers, who know their job, can do the best.</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 72.0pt; mso-add-space: auto; text-align: justify;"><br /></div><div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-align: justify; text-indent: -18.0pt;"><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><br /></span></div><div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;">C.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><span style="font-family: "cambria" , serif; text-indent: -18pt;">What should HR do in the PMS process?</span></div><div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-align: justify; text-indent: -18.0pt;"><span style="font-family: "cambria" , serif; text-indent: -18pt;"><br /></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 72.0pt; mso-add-space: auto; mso-list: l1 level2 lfo1; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;">1.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Custodial Service: HR should provide the custodial service to line managers by program managing the process. In addition, it should be the eyes and ears of leaders to ensure their objectives are met.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 72.0pt; mso-add-space: auto; mso-list: l1 level2 lfo1; text-align: justify; text-indent: -18.0pt;"><span lang="EN-US" style="font-family: "cambria" , "serif";"><br /></span></div><div class="MsoListParagraphCxSpLast" style="margin-left: 72.0pt; mso-add-space: auto; mso-list: l1 level2 lfo1; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;">2.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Capability Building of people managers:<o:p></o:p></span></div><div class="MsoNormal" style="margin-left: 81.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , "serif";">HR should focus on capability building of people managers to help:<o:p></o:p></span></div><div class="MsoListParagraphCxSpFirst" style="margin-left: 108.0pt; mso-add-space: auto; mso-list: l1 level3 lfo1; mso-text-indent-alt: -9.0pt; text-align: justify; text-indent: -108.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span>i.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Cascade the objectives seamlessly<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 108.0pt; mso-add-space: auto; mso-list: l1 level3 lfo1; mso-text-indent-alt: -9.0pt; text-align: justify; text-indent: -108.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span>ii.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Coach their team<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 108.0pt; mso-add-space: auto; mso-list: l1 level3 lfo1; mso-text-indent-alt: -9.0pt; text-align: justify; text-indent: -108.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span>iii.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Provide constructive feedback<o:p></o:p></span></div><div class="MsoListParagraphCxSpLast" style="margin-left: 108.0pt; mso-add-space: auto; mso-list: l1 level3 lfo1; mso-text-indent-alt: -9.0pt; text-align: justify; text-indent: -108.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span>iv.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Train team through demonstration<o:p></o:p></span></div><div class="MsoNormal" style="margin-left: 81.0pt; text-align: justify;"><br /></div><div class="MsoListParagraph" style="mso-list: l1 level1 lfo1; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;">D.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">What is their in PMS process for people?<o:p></o:p></span></div><div class="MsoListParagraph" style="mso-list: l1 level1 lfo1; text-align: justify; text-indent: -18.0pt;"><span lang="EN-US" style="font-family: "cambria" , "serif";"><br /></span></div><div class="MsoNormal" style="margin-left: 36.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , "serif";">Primarily a PMS process helps people to deliver on organization objectives, which in turn helps people, learn and grow. The learning is based on what they do, manager’s feedback and his coaching and guidance. This is the biggest source of learning for people.<o:p></o:p></span></div><div class="MsoNormal" style="margin-left: 36.0pt; text-align: justify;"><br /></div><div class="MsoNormal" style="margin-left: 36.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , "serif";">By the way, PMS also provides input for:<o:p></o:p></span></div><div class="MsoListParagraphCxSpFirst" style="margin-left: 72.0pt; mso-add-space: auto; mso-list: l2 level1 lfo3; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;">1.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Learning and development<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 72.0pt; mso-add-space: auto; mso-list: l2 level1 lfo3; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;">2.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Compensation<o:p></o:p></span></div><div class="MsoListParagraphCxSpLast" style="margin-left: 72.0pt; mso-add-space: auto; mso-list: l2 level1 lfo3; text-align: justify; text-indent: -18.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: "cambria" , "serif"; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;">3.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span lang="EN-US" style="font-family: "cambria" , "serif";">Career Growth through lateral and vertical opportunities<o:p></o:p></span></div><div class="MsoNormal" style="margin-left: 36.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , "serif";">So PMS is the mother of all HR processes. But PMS itself is a business process.<o:p></o:p></span></div><div class="MsoNormal" style="margin-left: 36.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , "serif";"><br /></span></div><div class="MsoNormal" style="margin-left: 36.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , "serif";"><br /></span></div><br /><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: "cambria" , "serif";">Most PMS processes that fail are people centric and do not deliver business results. Therefore business managers are not interested. In the bargain people do not learn and grow. The input that such a PMS process provides to all the other HR processes is not rich enough, making all the HR processes redundant from business perspective.<o:p></o:p></span></div></div>Prashant Srivastavahttp://www.blogger.com/profile/05946535075753853234noreply@blogger.com0tag:blogger.com,1999:blog-3305213931009194326.post-21957921909794098852015-12-09T05:55:00.000-08:002018-08-20T23:38:00.808-07:00Business and HR Part 1: Is "Corporate Socialism" killing businesses?<div dir="ltr" style="text-align: left;" trbidi="on"><span style="color: rgba(0 , 0 , 0 , 0.701961); font-family: "georgia" , serif; font-size: 18px; line-height: 32px;">Most Indian organizations and foreign companies operating in India could have done better than what they are doing. There are many reasons for suboptimal performance of organizations, across business, Government and NGOs. These are lack of appropriate capabilities, lack of training and development, lack of leadership, improper risk assessment, inappropriate strategy or business model. Different companies are plagued with some or a combination of these issues. All of us know that even if strategy or business model is slightly defective or if the risk was not properly assessed, the key to success is excellent execution. However, most companies demonstrate lack of excellence in execution. What is the root cause?</span><br /><span style="color: rgba(0 , 0 , 0 , 0.701961); font-family: "georgia" , serif; font-size: 18px; line-height: 32px;"><br /></span><br /><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">The primary reason for lack of excellence in execution is "Socialism at Work", which cuts across most companies in almost all sectors in Asia and especially in India. If the organizations reward the high performer and low performer similarly, what is the incentive to perform? Even worse, the organizations do not give differential treatment to performers, in terms of opportunities, resources and recognition and appreciation.</div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">What should companies do to enhance performance?</div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">DIFFERENTIATE through:</div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">1. A very transparent PMS process with quantified goals.</div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">2. Capability of managers to call a spade a spade. </div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">3. Leaders own differentiation of performance and drive it though the year.</div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">3. Very high differentiation in variable pay and increments between high and average performers.</div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">4. The developmental and growth opportunities for the high performers, which should be distinct from those available to average performers.</div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">5. Superior resources to high performers in order to help them be more productive and effective. This would ultimately help business perform better.</div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">In Government sector the option to differentiate is limited. Therefore motivation to perform is limited.</div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">Some of the public sector companies, especially banks, have used differentiated opportunities and resources as key drivers to motivate high performers and help them deliver better. These organizations have excelled compared to their peer group. Their ability to influence or effect differentiation in compensation was limited.</div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">In Private Sector all the levers are available. But the will to create differentiation is lacking in most organization. The challenge becomes bigger when CEOs do not want to differentiate, little realising that this will hamper the business performance and consequently their own performance, and may be survival. </div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">In an environment of Corporate Socialism, high performers are frustrated and leave for greener pastures. This leaves the well rewarded mediocre talent behind, resulting in a mediocre organization and mediocre business performance.</div><div style="color: rgba(0, 0, 0, 0.701961); font-family: Georgia, serif; font-size: 18px; line-height: 32px; margin-bottom: 32px;">Leaders have to choose between socialism and high performing businesses.</div><div><br /></div></div>Prashant Srivastavahttp://www.blogger.com/profile/05946535075753853234noreply@blogger.com0