MATERI #11 Intervensi Manajemen Sumberdaya ManusiA MISBAHUDDIN AZZUHRI SE. MM. CPHR®. CSRS®. 081 555 80 8899 081 233 72 8899 dinoazzuhri@live.com misbachazzuhri@gmail.com

Learning Objectives To present a model for understanding the components and relationships associated with performance management To explore three interventions concerned with managing the performance of human resources: goal setting, performance appraisal, and reward systems To examine three human resource management interventions: career planning and development, workforce diversity, and employee wellness To understand how OD efforts enhance human resource approaches to these issues To compare and contrast two different classes of strategic interventions: competitive and collaborative

PERFORMANCE MANAGEMENT MODEL Source: Cummings & Worley, 2008 Business Strategy Reward Systems Goal Setting Individual and Group Performance Workplace Technology Employee Involvement Performance Appraisal

Characteristics of Effective Goals Challenging but realistic Goals are set participatively Goals are Challenging Goals are specific and operationally defined Resources for goal achievement are negotiated Goals are Clear

Management by Objectives (MBO) MBO attempts to align personal goals with business strategy through increased communications and shared perceptions between managers and subordinates MBO programs may go beyond manager and subordinate roles to address individuals, work groups, and to reconcile conflicts.

MBO Application Stages Involve the whole work group Goals set jointly by manager and subordinate Action plans are established Criteria and yardsticks are established Work progress and contract reviewed and adjusted periodically Records of meetings are maintained

Performance Appraisal Elements Traditional High Involvement Purpose Organizational, legal Fragmented Developmental Integrative Appraiser Supervisor or manager Appraisee, co-workers, and others Role of Appraisee Passive recipient Active participant   Measurement Subjective Concerned with validity Objective and subjective Timing Period, fixed, administratively driven Dynamic, timely, employee- or work-driven

Performance Appraisal Application Stages Select the appropriate stakeholders Diagnose the current situation Establish the system’s purposes and objectives Design the performance appraisal system Experiment with implementation Evaluate and monitor the system

Characteristics of Effective Appraisal Systems Timely Accurate Accepted by the users Understood Focused on critical control points Economically feasible

Reward System Design Features Definition Person/Job Based vs. Performance Based The extent to which rewards are based on the person, the job or the outcomes of the work Market Position (External Equity) The relationship between what an organization pays and what other organizations pay Internal Equity The extent to which people doing similar work within and organization are rewarded the same Hierarchy The extent to which people in higher positions get more and varied rewards Centralization The extent to which reward system design, decisions and administration are standardized Rewards Mix The extent to which different types of rewards are available and offered to people Security The extent to which work is guaranteed Seniority The extent to which rewards are based on length of service

Characteristics of Effective Reward Systems Availability Timeliness Performance Contingency Durability Equity Visibility

Types of Rewards Pay Promotions Benefits Skill-based pay plans Performance-based pay systems link pay to performance Gain sharing involves paying bonuses based on improvements in the operating results Promotions Benefits

Salary-Based Pay for Performance Ratings Ties pay to performance Negative side effects Encourage cooperation Employee Acceptance Source: Cummings & Worley, 2008 Individual Plan Productivity 4 1 1 4 Cost effectiveness 3 1 1 4 Superiors’ rating 3 1 1 3 Group Productivity 3 1 2 4 Cost effectiveness 3 1 2 4 Superiors’ rating 2 1 2 3 Organization- Productivity 2 1 3 4 wide Cost effectiveness 2 1 2 4

Stock/Bonus Pay for Performance Ratings Ties pay to performance Negative side effects Encourage cooperation Employee Acceptance Source: Cummings & Worley, 2008 Individual Plan Productivity 5 3 1 2 Cost effectiveness 4 2 1 2 Superiors’ rating 4 2 1 2 Group Productivity 4 1 3 3 Cost effectiveness 3 1 3 3 Superiors’ rating 3 1 3 3 Organization- Productivity 3 1 3 4 wide Cost effectiveness 3 1 3 4 Profit 2 1 3 3

Gain Sharing Pay Plan Considerations Process of design - participative or top-down? Organizational unit covered - plant or companywide? Determining the bonus - what formula? Sharing gains - how and when to distribute? Managing change - how to implement system?

Career Stages Establishment Stage (ages 21-26) Advancement Stage (ages 26-40) Maintenance Stage (ages 40-60) Withdrawal Stage (age 60 and above)

Career Stages and Planning Issues Establishment What are alternative occupations, firms, and jobs? What are my interests and capabilities? How do I get the work accomplished? Am I performing as expected? Advancement Am I advancing as expected? What long-term options are available? How do I become more effective and efficient? Maintenance How do I help others? Should I reassess and redirect my career? Withdrawal What are my interests outside of work? Will I be financially secure? What retirement options are available to me?

Career Planning Resources Communication regarding career opportunities and resources within the organization Workshops to assess member interests, abilities, and job situations and to formulate career plans Career counseling by managers or human resource department personnel Self-development materials directed toward identifying life and career issues Assessment programs that test vocational interests, aptitudes, and abilities relevant to career goals

Career and Human Resource Planning Individual Career Planning Human Resources Planning Retirement Development planning and review Job assignment choice Occupational and organizational choice Personal objectives and life plans Ways to prepare for satisfying retirement Ways to help people perform and develop Methods for matching individuals and jobs Ways to attract and orient new talent Business objectives and plans

Career Development Interventions Role & Structure Interventions Realistic job preview Job rotation and challenging assignments Consultative roles Phased retirement Individual Employee Development Assessment centers Mentoring Developmental training Performance Feedback and Coaching Work Life Balance

A Framework for Managing Diversity Source: Cummings & Worley, 2008 External Pressures For & Against Diversity Management’s Perspectives & Priorities Strategic Responses Implementation Internal Pressures For & Against Diversity

Age Diversity Trends Median age up Distribution of ages changing Implications Health care Mobility Security Interventions Wellness programs Job design Career development and planning Reward systems

Gender Diversity Trends Percentage of women in work force increasing Dual-income families increasing Implications Child care Maternity/paternity leaves Single parents Interventions Job design Fringe benefit rewards

Disability Diversity Trends The number of people with disabilities entering the work force is increasing Implications Job skills and challenge issues Physical space design Respect and dignity Interventions Performance management Job design Career planning and development

Culture and Values Diversity Trends Rising proportion of immigrant and minority-group workers Shift in rewards Implications Flexible organizational policies Autonomy Affirmation and respect Interventions Career planning and development Employee involvement Reward systems

Race/Ethnicity Diversity Trends Minorities represent large segments of workforce and a small segment of top management/senior executives Qualifications and experience of minority employees is often overlooked Implications Discrimination Interventions Equal employment opportunities Mentoring programs Education and training

Sexual Orientation Diversity Trends Number of single-sex households up More liberal attitudes toward sexual orientation Implications Discrimination Interventions Equal employment opportunities Fringe benefits Education and training

Stress and Wellness Workplace Interventions Role Clarification A systematic process for determining expectations and understanding work roles Supportive relationships Establish trust and positive relationships Stress inoculation training Programs to help employees acquire skills and knowledge to cope positively with stressors Health facilities Employee Assistance Programs

Environmental Dimensions & Organizational Transactions Resource Dependence Source: Cummings & Worley, 2008 Low High Low Minimal environmental constraint and need to be responsive to environment Moderate constraint and responsiveness to environment Information Uncertainty Maximal environmental constraint and need to be responsive to environment Moderate constraint and responsiveness to environment High

Competitive Strategies Uniqueness All organizations possess unique bundles of resources and processes that represent the source of competitive advantage Value Organizations that arrange their unique resources and processes to produce products or services that have value (low cost, desirable features) Difficult to Imitate Competitive advantage is sustainable when it is difficult to duplicate

Integrated Strategic Change (ISC) Strategic Analysis Strategic Choice Designing the Strategic Change Plan Implementing the Strategic Change Plan

The Integrated Strategic Change Process Source: Cummings & Worley, 2008 Strategy S1 Strategy S2 Strategic Change Plan Organization O1 Organization O2 Implementation Strategic Analysis Strategic Choice

ISC Application Stages Strategic Analysis Assess the readiness for change and top management’s ability to carry out change Diagnose the Current Strategic Orientation Strategic Choice Top management determines the content of the strategic change Designing the Strategic Change Plan Development of a comprehensive agenda to achieve the change Implementing the Strategic Change Plan

Mergers and Acquisitions Merger - the integration of two previously independent organizations into a completely new organization Acquisition - the purchase of one organization by another for integration into the acquiring organization. Distinct from strategies for collaboration, such as alliances and networks, because at least one of the organizations ceases to exist.

Merger and Acquisition Rationale Diversification Vertical integration Gaining access to global markets, technology, or other resources Achieving operational efficiencies, improved innovation, or resource sharing

Merger and Acquisition Application Stages Pre-combination Phase The organization must identify a candidate organization, work with it to gather information about each other, and plan the implementation and integration activities Legal Combination Phase The two organizations settle on the terms of the deal, gain approval from regulatory agencies and shareholders, and file appropriate legal documents Operational Combination Phase Implementing the operational, technical and cultural integration activities

Collaborative Strategies Involve two or more organizations who agree to work together to achieve their objectives Align and coordinate organization strategies, goals, structures, and processes as they become interdependent Allow organizations to perform tasks that are too costly and complicated for single organizations to perform Also known as transorganizational systems, including alliances and networks

Alliance Interventions When two organizations formally agree to pursue a set of goals There is sharing of resources, intellectual property, people, capital, technology, capabilities or physical assets Common alliances are licensing agreements, franchises, long-term contracts, and joint ventures

Alliance Intervention Application Stages Alliance Strategy Formulation Clarify the business strategy and why an alliance is needed Partner Selection Leverage similarities and differences to create competitive advantage Alliance Structuring and Start-up Build and leverage trust in the relationship Alliance Operation and Adjustment

Network Interventions Involves three or more companies joined together for a common purpose Each organization in the network has goals related to the network as well as those focused on self-interest Characterized by two types of change: creating the initial network (transorganizational development) and managing change within an established network

Managing Network Change Create instability in the network Manage the tipping point The Law of the Few Stickiness The Power of Context Rely on self-organization

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