Performance Tracking & Monitoring

1. Performance Tracking & Monitoring

2. Effect Effect Financial Performance Measures Accounting Measures Results Effect Non-Financial Performance Measures EPS? ROE? ROCE? ROI? CFROI? • Achievement vs objectives set • Competency growth Superior HRM improves capabilities Linking Results to Employee Effort Cause • Capabilities • Speed • Quality • Variety • Cost/value • Productivity Capabilities are ultimate performance drivers.

3. High Step 5 Vision Led • High Level of employee empowerment • High Employee Performance • High Employee Satisfaction • High Employee Involvement • Challenging Working Environment • Optimum HRM Cost Structure Step 4 RESULTS DRIVEN Step 3 Degree of Clarity of Job Results KRAs Step 2 • Review Performance & Results • Provide Coaching & Counselling Step 1 • Objectives & Key Measures • Standards for Performance • Discuss & Agree on Account. UNCLEAR Performance driven o Grievance level o Absenteeism o Discipline issue o Poor work ethics Low High Level of Trust & Commitment (Between Team Leader & Team Member) Effective Performance Contracting

4. Motivating Superior Performance Traditional Reward Management Principles Performance Linked / Incentive Based Management Compensation is an enabler ofmotivation What we pay employees is anexpense Employees are likecommodities& have a Fair price Compensation should vary with results – performance • Payroll has two parts: • Fixed costs • Variable costs – this is the input to stimulatesuperior results Companies should payjust enough Reward for performance & achievement will Be determined & made known to the employees at theend of the business period Employees will be informed of the incentive at the beginning of the performance period Fixed cost will follow the inflation curve but variable cost will fluctuate with business results Salaries like commodity prices, follow the Inflation curve, although salaries tend to lag a year or so behind inflation Employees feel they areobjects ofthe Enterprise. They do as they are told to. Employees arebusiness partnersempowered to Seek planned results.

5. ICC’s Decisions Xpert System Rewarding Compensation Management Acquiring CapabilityRecruitment and Selecting Assurance Planning Succession Planning and Career Planning Financial Planning Manpower Planning, Budgeting and Productivity Capability Improvement Training & Development AccountabilityOrganization Structure and Job Evaluation Results Performance Management HRMS Applications Database Operating System

6. Step One: Strategic Plan: - Mission and Vision - Strategic Objectives - Job Design - Job Evaluation Step Two: Performance Contracting Step Four: Evaluate Results Step Three: Monitor Results and Take Corrective Action Play Decisions Xpert Demo (Login) The Performance Management Cycle

7. Play Job Design demo Play Job Evaluation demo Job Design Determining the Results Description of Top Management based on the Organization’s Vision and Mission. • The Results Description will display the; • Key Results Area (KRAs) • Major Supporting Actions • Key Performance Indicators (KPIs) • The KRAs and KPIs of Top Management are cascaded down to positions below to ensure performance orientation at all levels.

8. Play Performance Planning demo Performance Planning Discuss and Agree on the role accountabilities, targets to be achieved and the standards of performance with the team leader. This ensures clarity of goals and develops the trust and commitment between team leader and subordinates.

9. Play Performance Monitoring Demo Performance Monitoring Performance monitoring is conducted throughout the performance cycle. This ensures constant communication between team leader and team member on performance progress.

10. Play Performance Evaluation Demo Performance Evaluation Performance evaluation is conducted at the end of the assessment period. Results of performance evaluation will be used determine the performance ratings.

11. Rating Scale Consistently exceeds most requirements associated with the position at least for the past 2 years Accomplishments are outstanding to the standards expected for the position and sustained over the review period 5 Outstanding Exceeds most requirements associated with the position Accomplishments are very good (superior) and more than required by the job 4 Commendable Meets the Corporate Plan standards and all the requirements associated with the position Accomplishments are clearly in accordance with the job demands 3 Corporate Plan Standard 2 Needs Improvement Meets some of the requirements associated with the position Accomplishments are below expectations demanded of the job 1 Unsatisfactory Does not meet most of the requirements associated with the position Consistently fail to meet expectations and standards in most area

12. Competency Rating Scale Definition

13. Performance - Compa Ratio Matrix Compa Ratio

14. · The gerenal perception is likely to be that investment in · HR perceived to be system has not produced incompetent adequate returns · Value-added · HRIS seen as inqdequate ROI · HR must seek investments in Decision Support DSS technology · ROI potential not realized System · Under utilized technology · HR perceived to be not · HR must play the role of · Cost savings Expectations responding to business needs internal consultants to realize potential ROI Transaction Processing · Under utilized technology · Under utilized technology · HR needs to actively · Administrative objectives · HR must promote technology promote the use of achieved utilization transaction processing and · Unrealized ROI DSS. Processing · Unrealized ROI Data Level 1 Level 2 Level 3 Data Processing Transaction Processing Decision Support System Technology Capability How has HRM computerization evolved?

15. Level 3: Decision Support Systems production of decision options, facility for interaction, dynamic knowledge development related to resource utilization e.g. Job evaluation and pricing; Job vs Person Matching for succession planning Level 2: Transaction Processing automation of workflow e.g. leave application including approval and communication Level 1: Data Processing data input, storage and retrieval e.g. payroll processing, personnel file maintenance, training record keeping How has the HRM function perceived computerization?

16. Proper Utilization of Technology

17. Name Name Position Position Career Career Job Job Current Current Performance Performance Company Company Market Market Increment Increment Succession Succession Management Management Level Level Grade Grade Salary Salary Rating Rating Compa Compa - - Compa Compa - - Discrepancy Discrepancy Development Development Ratio Ratio Ratio Ratio Needed Needed Ismail Ismail HR HR 4,000 4,000 Hassan Hassan Manager Manager What HRMS today cannot provide Ability to capture the important operating data Today’s HRMS Service Providers are unable to assist in completing field entries

18. Name Name Position Position Career Career Job Job Current Current Performance Performance Company Company Market Market Increment Increment Succession Succession Management Management Level Level Grade Grade Salary Salary Rating Rating Compa Compa - - Compa Compa - - Discrepancy Discrepancy Development Development Ratio Ratio Ratio Ratio Needed Needed Ismail Ismail HR HR E5 E5 6 6 4,000 4,000 2 2 0.67 0.67 0.53 0.53 6% 6% +2 +2 1 1 Hassan Hassan Manager Manager Job Grading Evaluation Formula Formula Recruitment & Training & Selection Development Job Evaluation Critical Market Compa - Career Coaching Decision Management Salary Ratio Counseling Making Development Job Analysis Needed Processes Job Person Planning Match Current Current Career Level Job Design Salary Salary Job Incumbent Competency Competency Business Plan Profile Profile Modeling Budgeting & Person Productivity Competency Business Plan Profile Manpower Planning Job Analysis Organization Organization Design Design Business Business Play Decisions Xpert Benefits Demo Planning Planning The Decisions Xpert™ Architecture to support HRM Strategic Decision Making

19. Benefits of Decisions Xpert For the Organization For the Employee Utilization of effective HRM models to create Job Design that addresses organizational needs Facilitates decision-making in key HRM areas through concise analysis Access to external market remuneration and productivity benchmarks Enables dynamic and effective communication & collaboration within the organization Continuous direct communication with Team Leader Clear & transparent performance objectives & measures Facilitates career management decisions Enables remote communication between locations Efficient storage and retrieval of career and performance data

20. Features and capabilities of the 21st Century HRM Decision Support System The following are conceptual areas where Decision Support Systems are required: 1.Compensation Management – what nature of pay structure that needs to be maintained to attract, retain and motivate the superior performer 2.Succession Planning – how to ensure all key and critical positions are staffed by the best capability 3.Manpower Planning, budgeting and productivity – manpower costs, external benchmarking, productivity enhancement, trend analysis and improvement 4.Performance Management/Business Plan Implementation – facility for performance contracting and performance appraisal 5.Training & Development – facility for training needs analysis, gap analysis between job competency and person capability, and management of training options 6.Recruitment & Selection – facility for differentiating superior performance, and cost effectively selecting the right candidate for the job

21. List of Job Description (JD) by Job Grades (JG) in Info System

22. Assessing Capabilities Capability Discrepancy & Management Development Needs

23. Market Salary Comparison

24. JOB Compa-Ratio Analysis CAREER LEVEL Compa Ratio

25. Salary Increment Matrix Salary Increment

26. Bonus Payment Matrix Bonus Payment

27. Decisions Support SystemforMonitoring and Tracking Performance