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STRATEGY IMPLEMENTATION- REWARD & DEVELOPMENT SYSTEMS. REWARD AND DEVELOPMENT SYSTEM. Reward systems provide incentives and reinforcement for workforce behaviours that contribute to the implementation of strategies .
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REWARD AND DEVELOPMENT SYSTEM • Reward systems provide incentives and reinforcement for workforce behaviours that contribute to the implementation of strategies . • Development systems provide the workforce skills required for implementation.
Strategy Oriented Performance Management system. • Different approaches. • MBO ( Management by Objectives) • Narrative. • BARS (Behaviorally anchored Rating Scale - leadership- how accomplished) • BOS ( Behavioural Observation Scales-time management, quality, knowledge, waste management etc) • 360 –Degree Feedback ( Feedback from Manager, subordinate and internal / external clients) • Performance Evaluation of Executives ( different questions / opinions about effectiveness as they are responsible for all results) • Effectiveness of performance Measurement- buy in of employees important. • SMART Objectives: • Simple. ( equally understandable by manager and performer) • Measure able.( what to measure and how to measure parameters for measurement needs to be clear.) • Achieve able.- ( possibility of achievement based on resources, capacity, skills etc.) • Realistic. (not imaginary) • Time targeted. ( when to complete)
Strategically Oriented Compensation System • Traditional Compensation System. • Job based pay systems incorporating job analysis, knowledge, skills , abilities. • Job evaluation based on compensable factors. • Different point based job evaluation systems like Hay method, IPE, Hybrid method etc. • Market salary survey based salary revisions. • Union negotiated compensation.
Strategically Oriented Compensation System • Strategic focused compensation systems. • Skill / knowledge - Based Pay. • Acquiring new skills / knowledge increase compensation, this is strong incentive for learning to meet challenges of rapid change of business environment. Also supportive for multi-skilling culture. • Broad banding. • Broad salary ranges provide flexibility for salary increases of Hi Potential / Hi Performing employees staying in the same salary grades.
Strategically Oriented Compensation System • Team based Pay. • Salary increases linked to team performance results. • Teams may be small within departments, at departmental level, site level, country level or divisional & company wide level. • Variable compensation. • Two parts of salary –one fixed and other linked with performance results.like add on bonuses, sales incentives, commission, % of profit. etc. • Executive compensation. • Most crucial strategic factor to support implementation of company strategy.
Employee Development • Training programs. • Companies having investment perspective in human resources view training as long term opportunity to enhance employee productivity. • Also it is seen as solution to number of problems such as quality issues, skills & productivity deficiencies and avoiding shortage of required skills for future use. • For Strategic effectiveness, • Training needs to be correctly identified, • Right training program to be designed / identified, • Process should be systematic and continuous.
Employee Development • Training methods. • New employee orientation-buddy method for socialization. (selection of buddy is important) • Job Orientation. new assignments, new systems / processes. • coaching ( day to day feedback on by supervisor) • Mentoring ( teaching / monitoring / guiding tii competency achieved --driving) • Apprentice ship programs. • Management development programs. • Developmental assignments locally / internationally. • Development Vs selection.
