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8/8/2019 Makalah Seminar 07102006
1/35
The Challenge of Transforming HRM intoHuman Capital Management Approach
Presented to The AMA DKI Seminar
ByAlex Denni
M. Soekmono
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Introduction
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVision
StrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 2
Indonesia within ASEAN Nation
The World Competitiveness Score Board
Source: IMD rating of 30 Nations population greater than 20 million, factormeasured: economic performance, government efficiency, business
efficiency and infrastructure
Country 1999 2000 2001 2002 2003
Malaysia 9 9 10 6 4
Thailand 16 13 14 13 10
Philippines 12 17 18 18 22
Indonesia 25 24 24 25 28
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 3
Economic Performance
Indonesia within ASEAN Nation
Country 1999 2000 2001 2002 2003Malaysia 6 2 2 8 8
Thailand 13 6 7 9 7Philippines 14 17 21 14 19
Indonesia 26 19 17 19 24
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 4
Government Efficiency
Indonesia within ASEAN Nation
Country 1999 2000 2001 2002 2003Malaysia 6 7 9 4 3Thailand 9 10 10 7 5Philippines 11 18 16 15 21
Indonesia 25 21 24 23 27
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 5
Business Efficiency
Indonesia within ASEAN Nation
Country 1999 2000 2001 2002 2003Malaysia 9 14 16 7 5Thailand 20 19 20 14 9Philippines 11 15 17 19 23
Indonesia 26 24 22 26 30
8/8/2019 Makalah Seminar 07102006
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8/8/2019 Makalah Seminar 07102006
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 7
even w orst!
The output resulted in average 8 hours byIndonesian worker :
Can be done in 2 hours and 45 minutesby Thai worker
Can be done in 1 hour and 5 minutes byMalaysian worker
Can be done in 11 minutes bySingaporean worker
(Source: ILO presentation December 2003. Includes both capital and people productivity)
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 8
I ndonesian Wages among Others
2.632.790.920.92Thailand1.692.000.590.66China
22.2322.677.787.48Singapore
7.948.792.782.90Malaysia
1.001.000.350.33Indonesia
2002200320022003
Relative Wage Levels
Wage Levels (USD) Country
Sources : World Competitiveness Yearbook,IMD Est: Total Hrly compensation for Manufacturing workers(wages+supplementary benefits),USD
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 9
Are Indonesian peopleliabilities or assets ?
Are Indonesian peopleliabilities or assets ?
The Question is ..
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People Management Movement
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 11
The Evolution of People Management Approach
Labor Approach
Legal Approach Personnel Administration
Human Resource Development Human Resource Management Human Capital Management
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 12
PeoplePeopleParadigmsParadigms
MissionVisionValues Strategy
Structure,Systems &Processes
Culture(Behaviors)
Results
PeopleParadigms
StakeholderNeeds
Performance PeoplePeopleParadigmsParadigms
MissionVisionValues Strategy
Structure,Systems &Processes
Culture(Behaviors)
Results
PeopleParadigms
StakeholderNeeds
Performance
Organizational Effectiveness Cycle
People Management
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 15
The Paradigm Shift from HRM to HCM
1. People should not presumed as resourceswhich are usually used and consumed alongthe process. They should be presumed asassets which their increased value become theultimate goal of every organization and the
depletion of them should be avoided.2. Any initiatives on people management shouldbe measured and finally translated into financial
terms.
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 16
Which attribute considered as The Capital?
1. The weight of the people?2. The height of the people?3. The age of the people?4. The skin the people?
5. The eye of the people?
The Competency of People !
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 17
The Competency Defined
Underlying characteristics of people that iscausally related to criterion-referencedeffective and/or superior performance
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 18
The Iceberg of Competency Characteristics
Self ConceptSelf Concept
KnowledgeKnowledge
SkillSkill
MotiveMotive
Character/ TraitCharacter/ Trait
Relatively Hidden& Centered on
Personality
Relatively Visible & Centered on
Ability Likely to beThreshold
Competency
Likely to beDifferentiatingCompetency
Effective Performance
Superior Performance
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 19
Human Capital Management System Alignment
HR Planning,Recruitment,Selection & Placement
Career,Succession& Termination
RewardSystem
Orientation,Training &
Development
Organization Structure
(Single Reference Document )Distinct Job Profile
PerformanceManagement
System
M VV
Corporate Strategy
C O R P O R A T E C U L T U R E
Core ValuesExpected Behavior
Payroll & Employee
Services
CorporatePerformance
Score Card
CriticalBusiness Process
EmployeeSatisfaction
Human Capital Information System
Enabler
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 20
W hat is The Biggest Challenge?
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 21
Aligning Reward System !
HR Planning,Recruitment,Selection & Placement
Career,Succession& Termination
RewardSystem
Orientation,Training &
Development
Organization Structure
(Single Reference Document )Distinct Job Profile
PerformanceManagement
System
M VV
Corporate Strategy
C O R P O R A T E C U L T U R E
Core ValuesExpected Behavior
Payroll & Employee
Services
CorporatePerformance
Score Card
CriticalBusiness Process
EmployeeSatisfaction
Human Capital Information System
Enabler
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 22
5 Major I ssues on Rew ard System Development
Reward Philosophy
Reward Plan Design Reward Assessment Reward Form
Reward Delivery
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 23
1. Rew ard P hilosophy
Fundamental beliefs about goals of all
components of the reward systemrelative to the business strategy The Major Issues are :
Internal vs External Equity Lead vs Lag Market Attraction vs Retention
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 24
2. Rew ard P lan Design
Determining the Plan Design of
Reward System The Issues are : Participative vs Non participative
Centralized vs Decentralized Static vs Dynamic Lead vs Lag
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 25
3. Rew ard Assessment
Determining the amount to pay each
employee based on valuable factor The Issues are : Job vs Person Results vs Behavior Seniority vs Performance Education vs Skills
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 26
4. Rew ard Form
Determining the variance in pay form
The Issues are : Monetary vs Non monetary Fixed vs Variable
Individual vs Team
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 27
5. Rew ard Delivery
Determining the delivery technique of
Reward System The Issues are : Narrow vs Broad Pay Bands
Small vs Large Pay Band Overlap Open vs Closed Pay Communication
Vi iVi id Mi iMission Vi iVi i
d Mi iMission
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 28
Aligning Reward Systemon Human Capital Strategy
VisionVisionCustomerandCustomerand MissionMission VisionVision
CustomerandCustomerand MissionMission
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VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
VisionVisionStrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Customer andCustomer andOther Stakeholder Other Stakeholder
NeedsNeeds
PeoplePeopleParadigmsParadigms
MissionMissionValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 29
Rew ard P hilosophy on Human Capital Strategy
Internal Equity vs External Equity?
Internal Equity : Keep the atmosphere balance! Lead Market vs Lag Market?
Lead Market !
Attraction vs Retention? Balance between two!
VisionVisionCustomer andCustomer and MissionMissionV lV l
VisionVision
Customer andCustomer and MissionMissionV lV l
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StrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Other Stakeholder Other Stakeholder NeedsNeeds
PeoplePeopleParadigmsParadigms
ValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
StrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Other Stakeholder Other Stakeholder NeedsNeeds
PeoplePeopleParadigmsParadigms
ValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 30
Rew ard P lan Design on Human Capital Strategy
Participative vs Non Participative Reward Plan Design? Participative!
Centralized and Decentralized Reward Plan? Could be both!
Static vs Dynamic Reward Plan ? Static and Dynamic!
Lag vs Lead Strategy? Lag!
VisionVisionSSt t
Customer andCustomer andOther StakeholderOther Stakeholder
MissionMissionValuesValues
VisionVision
SSt tCustomer andCustomer and
Other StakeholderOther StakeholderMissionMissionValuesValues
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StrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Other Stakeholder Other Stakeholder NeedsNeeds
PeoplePeopleParadigmsParadigms
ValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
StrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Other Stakeholder Other Stakeholder NeedsNeeds
PeoplePeopleParadigmsParadigms
ValuesValues
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 31
Rew ard Assessment on Human Capital Strategy
Job Emphasis vs Person Emphasis ?
Person Emphasis ! Education vs Competency?
Education, Experience & Competency!
VisionVisionStrategyStrategy
Customer andCustomer andOther StakeholderOther Stakeholder
MissionMissionValuesValues
VisionVision
StrategyStrategyCustomer andCustomer and
Other StakeholderOther Stakeholder MissionMissionValuesValues
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StrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Other Stakeholder NeedsNeeds
PeoplePeopleParadigmsParadigms
Processes,Processes,Structure, andStructure, and
SystemsSystems
StrategyStrategy
CultureCulture(Behaviors)(Behaviors)
ResultsResults
Other Stakeholder NeedsNeeds
PeoplePeopleParadigmsParadigms
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 32
Rew ard Form on Human Capital Strategy
Monetary vs Non-monetary Rewards?
Both! Fix vs Variable Reward?
Variable!
Individual vs Team Reward? Individual!
VisionVisionStrategyStrategy
Customer andCustomer andOther Stakeholder Other Stakeholder
dN d
MissionMissionValuesValues
VisionVision
StrategyStrategyCustomer andCustomer and
Other Stakeholder Other Stakeholder dN d
MissionMissionValuesValues
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CultureCulture(Behaviors)(Behaviors)
ResultsResults
NeedsNeeds
PeoplePeopleParadigmsParadigms
Processes,Processes,Structure, andStructure, and
SystemsSystems
CultureCulture(Behaviors)(Behaviors)
ResultsResults
NeedsNeeds
PeoplePeopleParadigmsParadigms
Processes,Processes,Structure, andStructure, and
SystemsSystems
2006 DUNAMIS ORGANIZATION SERVICES All rights reserved
September 2006 / Page 33
Rew ard Delivery on Human Capital Strategy
Narrow vs Broad Bands?
Broad Bands! Small vs Broad Band Overlap?
Small Band Overlap!
Open vs Closed Communication System? Open!
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Thank You