performance management system - ministry of...
TRANSCRIPT
Agenda
• Performance Management System: Organization Results • Role of CEO and Board on Organizational PMS • Performance Management Process • Implication of PMS • Motivated Employee and Organization Success • Case Study
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Because…. “ ระบบการพฒันาพนกังาน (Employee Development) และบรหิารผลงาน รวมท ัง้ควบคมุสง่เสรมิใหผ้ลการปฎบิตังิานของพนกังานเป็นไปในทศิทางเดยีวกบัปจัจยัความสาํเร็จขององคก์ร
(Organizational performance indicator) เพือ่บรรลซุึง่ผลสาํเร็จ (Organization’s goals) วสิยัทศัน ์(Vision)
และ พนัธกจิ (Mission) ขององคก์ร ผา่นทาง ระบบการบรหิารทรพัยากรมนยุษ ์(HR System) ”
Organization Strategy
I. HR System and Performance Management Systems
II. Driver, Culture and Motivation
Performance Management Outcome
Organization Result
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Human Resources Development & Management
SELECTION PERFORMANCE APPRAISAL
DEVELOPMENT
REWARD
CORE - FULLY UTILIZE - FULLY DEVELOP
ROLE - COMMUNICATION - MOTIVATION - LEADERSHIP - POWER/INFLUENCE
6 Learning and Development
Performance Management System
- Vision / Mission - Organization Direction - SCG Culture - SCG People
-Training opportunity to increase employee competence - Career movement opportunity - INNO Culture(5+3)
-Aligned direction and goals with Vision/Mission - Annual Plan / Action Plan
- Aligned individual plan Annual Plan / Action plan KPIs Competency Setting / Development
Training Road Map - Competency, IDP - Other development activities such as rotation opportunity
Planning Evaluating Monitoring Developing Rewarding
Business Part
Workforce Part
Identify Business Direction
Coaching and Feedback system
Career Planning and Development system Appraisal system
Rewarding system
Corporate performance - Dividend - Capital Gained - Merit Budget - Variable Bonus
- Financial Stability - Competitive Advantage - Productivity growth
Cor
pora
te V
iew
C
ompa
ny /
Div
isio
n Vi
ew
Indi
vidu
al V
iew
- Business Performance 1. EDITDA on OA 2. Relative performance 3. Improvement achieved
- EDITDA on OA - Annual Plan/Action Plan
I. Performance - Annual plan / Action plan - KPIs II. Potential
- Career Management and Development - Talent Management - Succession Planning - Employee Engagement
Monetary Benefit - Merit-Increased - Fixed Bonus - VP and VI - Special Adjustment - Promotion Adjustment - Recognition (Awards) II. Intrinsic Rewards
I. Extrinsic Rewards
- Board Of Director - MDC - Management Com.
- Board of Director - BU/Company - MDC
- Steering Committee - Division / Section - Immediate Boss
(EBITDA, Net Sale, Net Profit, Net Debt, EBITDA on OA, and relevant factors)
(Daily meeting, Monthly meeting, Quarterly meeting, annually)
(Personal,Leadership,Managerial)
(Core and Functional) III. Competency
Manager
Committee
(BU/Company level)
“Support and Commitment from Top
Management”
“Belief and understanding the important of the
process”
Involvement
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Business / Company Performance Evaluation
1. Absolute Performance % of EBITDA on Operating Assets of each
Business/Company
2. Relative Performance Compare to other businesses within the same
industry or compare to domestic competitors
3. Improvement Business/company’s capability of improvement
such as Product Development, Productivity etc.
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Competency Evaluation
Potential Evaluation
Performance Appraisal
DesiRe BehavioR
Individual Performance Evaluation (ระบบการประเมนิผลการปฏบิตังิาน แบบ ตวับคุคล)
Identify
Attract Retain
Planning
Performance
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1. Performance
2. Potential
3. Competency
Achievement KPI
Characteristic • Personal
• Leadership • Managerial
Competency • Core
• Functional
Competency Level
Potential Level
Performance Level
Variable Bonus Merit Increase
Career Path (Special)
Special Adjustment
Development
Methods Result Implement
SCG Performance Management Framework
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ปจัจยัในการประเมนิ 1. Action Plan 2. Knowledge Sharing 3. Other assignments
นําผลไปใช ้1. ขึน้คา่จา้ง 2. การจา่ยโบนัสหรอืขึน้เงนิรางวลั
3. การพัฒนา
Evaluating
Monitoring
Planning
Rewarding
1. การประเมนิผลการปฎบิตังิาน (Performance Appraisal)
PDCA
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2. การประเมนิศกัยภาพ (Potential Appraisal)
ปจัจยัในการประเมนิ 1. Personal Characteristics 2. Leadership Characteristics 3. Managerial Characteristics 4. Expert 5. Reliable
นําผลไปใชใ้นการประเมนิระดบัศกัยภาพ
1. ศกัยภาพสงู 2. ศกัยภาพระดบัปกต ิ 3. ศกัยภาพระดบัทีต่อ้งปรับปรงุ
4. ศกัยภาพระดบัตํา่กวา่มาตรฐานมาก
Talent Management and Career Growth
Development
IDP
By job family Develop to be normal
* For S3, S4 for Corporate Functions only
เพือ่จัดกลุม่พนักงานทีม่คีณุลกัษณะเหมาะสมทีจ่ะรับผดิชอบงานในระดบัสงูและเตรยีมแผนพัฒนาในดา้นตา่งๆ ใหแ้กพ่นักงานแตล่ะบคุคล
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Guideline to Potential Management
High Potential
Development Plan Career Growth
Normal
Need to be improved
Exit
Develop & Training Individual
By job family In current practice
Develop to be NORMAL TRACK
Improvable in 2 Yrs.
Unimprovable
Case by case
Fast Track
Promotable after “Fast Track”
Potential Reward
- Promotion - Merit Increase - SA
Information from SCG Performance Management System, March 2007
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Organization Strategy
Organization Competencies
Employee Competencies
Competency-Based Human Resources Management
HR Processes
Excellent Performance
Mission Vision
Values
Strategic Intent
Competency Framework
Performance Management System
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Performance Management (Planning and Eva. Level)
Strategy
Operation
Corporate Performance
Company / Division
Individual Performance
I. To help align employee ambitions with those of the organization. II. Specific and Measurable to be effective.
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Corporate Performance Evaluation
- Achievement on annual plan - Net Sale - Net Profit - Net Debt
Business / Company Evaluation
1. Absolute Performance % of Ebitda on Operating Assets of each Business/Company 2. Relative Performance Compare to other businesses within the same industry or compare to domestic competitors 3. Improvement Business/company’s capability of improvement such as Product Development, Productivity etc.
Individual Performance Evaluation - คณุสมบตัทิีพ่งึมตีาม จรรยาบรรณเครอืฯ - ศกัยภาพ - ผลการปฎบิตังิาน (Performance and Individual Plan)
SCG: Performance Management (Eva. Level)
Initiator (Strategies)
Translator (Business Structure)
Actor plus Result (Action Plan)
Strategy
Operation
- EBITDA on OA - E B I T D A - Operating Profit
- PE Ratio
1. Absolute Performance 2. Relative Performance 3. Improvement
24 Use of Performance Score Items Directly applied ?
Reward • Merit Increase Direct • Variable Bonus Direct
• Fixed Bonus Indirect
• Special Adjustment Direct
• Promotion Adjustment Direct Career Opportunity • Career Path (Title promotion) Direct
• Career Growth Direct
• Succession planning Direct Development • Business Knowledge program Indirect
• Leadership Development program Indirect
• Performance Improvement program Indirect • Other Development Activities (Ex. Rotation plan) Indirect
PMS and Item applied ..
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Rewarding : Performance against action plan
I. Monetary Benefit - Merit-Increased - Fixed Bonus - Variable Pay and Variable Incentive - Special Adjustment - Promotion Adjustment II. Non-Monetary Benefit Award (Recognition) - Training and Development Opportunity - Special Assignment - Business Trip
“Linkage Between Performance and Pay”
Budget for VP and Salary increase will be varied according to Corporate Performance achievement in each year. Remark:
-------------- Example-------------
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Career Management : Result of performance
I. Career Growth
II. Career Path
Career Growth
Result of Performance & Potential
FAST TRACK
NORMAL TRACK
SLOW TRACK
Level GROUP FAST TRCK NORMAL TRACK SLOW TRACK
S4 2 4 7 S3 2 4 6 S2 2 3 4 S1 2 3 4
Career Identification =====> Potential + Performance
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Succession Plan : Result of performance
Step 3
Step 1
Step 2 Employee Profile
Successor Development
Assessment of Potential
Replacement Chart
Step 4
Next Step will be Immediate Appointment Rotation (1-2 steps) Individual Development Plan : IDP
Classroom Training Project Assignment Coaching/Mentoring Work Shadowing
etc. Successor Review (3 times/year)
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“ SCG Applied” Development : Result of performance
SCG Training and Development Program
SCG Value – CG – Ethical
TRM -Functional Training
TQM-Operational Excellence Safety and Environment
Competency Development
General Management
English Teamwork
Communication Presentation Supervision
Team Building
Leadership Negotiation
Problem Solving &
Decision Making
MDP Mgt. Dev. Prog
BCD Bus Concept
Dev
ABC Abridge Bus.
Concept
LDP 3 Facilitative Leadership
LDP 2 Leading the Team
LDP 1 Leading Yourself
AMP Adv Mgt Prog.
EDP Exec. Dev. Prog.
Operator
Supervisor
Manager
Executive
Employee Level
Marketing Leadership Pro.