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CHINAMOBILE(HK)LIMITED

HumanResourceStrategy

Shanghai

February15,200XTHEBOSTONCONSULTINGGROUPCHINAMOBILE(HK)LIMITED

HuCONTENTHypothesesonChinamobilephonemarketBCG’sapproachtoHRstrategyProjectapproachandstructureBCGqualificationandexperienceAppendixSelectedCVsCONTENTHypothesesonChinamobTHEEVOLUTIONOFTHEMOBILEMARKETWILLCREATE

MAJORSTRAINSONHUMANRESOURCESHistorically,thegrowthchallengehasbeensimpleServepent-updemandwithonebasicproduct“Buildthenetwork,activatesubscribers,collectthepayments”IncreasingcompetitionandnewtechnologiesmeandramaticchallengesTremendousemphasisonmarketingandsalesIntensewarfarerequiringstrategyandtacticsIncreasingimportanceofcustomerrelationshipmanagementandserviceTheneedtodeveloppartnershipsandcreatenewbusinessesIncreasingpressureontechnicalabilities--broaderdefinitionoftechnologyIncreasingpressureonoverallcostpositionandproductivityNeedforcommercially-drivenseniormanagement,workingasateamThesestrainscreateaneedforafundamentalrethinkofHRstrategyTHEEVOLUTIONOFTHEMOBILEMAWITHOUTBUSINESS-DRIVENINPUT,ANHRSTRATEGYDEVELOPMENTEXERCISEWILLFAILThestrategicchangesinthemobilemarketbringrevolutionarychange,notevolutionarychangeOnedominantfactoristhatthesechangeswillrequiretherapidcreationofentirenewjobfamilies,andrapidchangeintherequirementsofexistingjobfamiliesAsaresult,theoverallpeoplemixofthecompanywillbedramaticallydifferentinthefuturethanitistoday.Themixwillalsobequitedifferentthaneitherthe“typicalPRCcompany”orthe“typicaltelco.”Therequiredpaceofchangewillalsobequitedifferent.AnHRstrategythatfailstotakethisintoaccountwillalsofail.IftheHRstrategyfails,thenthecompanywillfail.WrongskillstofacethefuturecompetitivethreatWrongoverallcoststructureThebestemployeesleavingtojointhecompetitorsMajormissedopportunitiestoformnewbusinessesandpartnershipsAtraditionalHRconsultingfirmwillnothaveaclearviewonthestrategicchangesTheirmodelswillbebasedupon“typicalPRCcompanies”and“typicalglobaltelcos.”Neitherwillbesufficient,andbothwillhavemajorflaws.WITHOUTBUSINESS-DRIVENINPUT,CONTENTHypothesesonChinamobilephonemarketBCG’sapproachtoHRstrategyProjectapproachandstructureBCGqualificationandexperienceAppendixSelectedCVsCONTENTHypothesesonChinamobThecellulartelephonemarketinAsia–inparticularinChina–willcontinuetoshowstronggrowthAsaresultofthisgrowth,thedynamicsofthemarketwillbeincreasinglystrongandwillaffecttheHumanResourcestrategyofChinaMobileBCGhasdevelopedanintegratedHRStrategyFrameworkthatwilllinkexternalmarketfactorstotheinternalrequirementsoftheorganizationWehavesubsequentlyoutlinedbothourHRStrategyFrameworkaswellassomeinitialanalysesonthemostrelevantexternalfactors–specificallytheseare:WTOCompetitionTechnologyBusinessMigrationCustomerServiceCHINAMOBILE’SHUMANRESOURCESTRATEGYWILLBEAFFECTEDBYAPOWERFULSETOFMARKETFACTORS

SummaryofsubsequentProposalSectionThecellulartelephonemarketSummarySummarySTRONGGROWTHINCELLULARTELEPHONYINASIA...

Asia-PacificCellularSubscribers,1990-2000CellularSubscribers(M)AnnualGrowth~75%AnnualGrowth~40%Note: TheAsia-PacificregionincludesthecountriesofNortheastAsia,SoutheastAsia,SouthAsia,theislandsoftheWesternPacific, AustraliaandNewZealand.Assumesdecreaseinrevenuepersubscriberof5%perannumbetween1996and2000.Source: InternationalTelecommunicationsUnion,MerrillLynch Revenue(US$B)347111727516889118156Asiaclaims36%oftheworld’scellularsubscribersby2000STRONGGROWTHINCELLULARTELE...ANDINPARTICULARINTHEGREATERCHINAREGION

ChinaCellularSubscribers,1991-2000CellularSubscribers(Mn)AnnualGrowth~170%AnnualGrowth~86%Source: CCID0.050.1770.6381.573.636.8513.2324.9843.875CellularSubscribers(Mn)...ANDINPARTICULARINTHEGGREATERCHINAWILLREPRESENTANINCREASINGLY

LARGEANDYNAMICMARKETINASIANote: Sub-regionalgroupingsincludeSouthAsia(India,Pakistan,Bangladesh,SriLanka),GreaterChina(China,Taiwan,HongKong,Macau)and SoutheastAsia(Brunei,Cambodia,Indonesia,Laos,Malaysia,Myanmar,Philippines,Singapore,Thailand,Vietnam)Source: InternationalTelecommunicationsUnionJapanAustralia/NewZealandSoutheastAsiaGreaterChinaKoreaSouthAsia0.28.5370.51777GreaterChina(M)TotalANJTotalAsia-Pacific(M)1.233125DistributionOfAsia-PacificCellularSubscribersGREATERCHINAWILLREPRESENTANEWBUSINESSCHALLENGES,WITHMAJORHRIMPLICATIONSWILLFACEMOBILEPLAYERSINCHINAUpcomingbusinesschallengeEmphasisonmarketingandsalesandintensewarfarerequiringstrategyandtacticsIncreasingimportanceofcustomerrelationshipmanagementandserviceTheneedtodeveloppartnershipsandcreatenewbusinessesIncreasingpressureontechnicalabilities--broaderdefinitionoftechnologyIncreasingpressureonoverallcostpositionandproductivityNeedforcommercially-drivenseniormanagement,workingasateamHumanresourceimplicationsThecreationofnewjobfamilieswitharangeofnewskillsandtalentsTheneedforaclearviewofhowmanynewemployeesareneededineachjobfamilyoverwhattimeframeAnunderstandingofwhatitwilltaketoattract,train,integrateandretaintheseemployeesAnviewoftheneworganizationalstructuresandprocessesthatareneededAviewontheimplicationsfortheexistingworkforce,intermsofproductivity,changingjobdefinition,andretrenchmentAviewofthenewstrategicroleofHR,andtherequiredHRcapabilitiesNEWBUSINESSCHALLENGES,WITHFIVESPECIFICMARKETFORCESWILLCHALLENGE

THEHRSTRATEGYGOINGFORWARDPerformancemanagementRequirementdefinitionSourcing&placementEmployeedevelopmentLeadership&cultureWTOCompetitionTechnologyBusinessMigrationCustomerServiceExternalfactorsaffectingtheorganizationBCGhumanresourcestrategyframeworkBCGHRstrategyframeworklinksexternalmarketfactorstointernalorganizationalrequirements21543FIVESPECIFICMARKETFORCESWIDETAILOFMARKETFACTORSIMPACTINGHRSTRATEGYWTOwillfurtheropenthemobilephonemarketDefinedtimetableestablishedNewforeigninvestmentOpenwirelineservicesin6yearsRegionalmarketpositionswillcomeunderpressureRapidintroductionof3GtechnologystandardsTraditionalbordersbetweenbusinesseswillchangeCustomervaluepropositionwillmigrateUnicomalreadygrowingfast3rdoperatorlikelytobeallowedintomarketbygovt.Transitionfrom2Gto2.5Gordirectlyto3GRapidgrowthinwirelessdataservicesWirelessdataallowsgreatershareofwalletTelcoandmediavaluechainsaremigratingChangingsuccessfactorsovertimeBasisofcompetitionshiftstocustomerserviceInternationalHRpracticeswillhavegreaterimpactasforeigninvestmentincreasesIncreasedpressureonemployeeretentionfromentryofnewplayersIncreasedcompetitionfortechnicallyqualifiedstaffNewcapabilityrequirementsaroundserviceandproductdevelopmentIntroductionofcustomerserviceasacoreskillforworkforceWTOCompetitionTechnologyBusinessMigrationCustomerService12345DETAILOFMARKETFACTORSIMPACExternalfactorsindetailExternalfactorsCHINA’SWTOAGREEMENTINCLUDESSPECIFICPROVISIONSFORFOREIGNINVESTMENTINTOTHECELLULARMARKETUponWTOaccessionWithin1yearofaccession(originallywithin3yearsunderUSdeal.AcceleratedbyEUagreement)Within3yearsofaccession(originallywithin5yearsunderUSdeal-acceleratedbyEUagreement)BeijingShanghaiGuangzhouChengdu,Nanjing,Xiamen,Chongqing,Ningbo,Xi’an,Dalian,Qingdao,Taiyuan,Fuzhou,Shenyang,Wuhan,Hangzhou,ShenzhenAllregionsUpto25%Upto35%Upto49%MarketwithCMCCpresenceSource:USTraderepresentative,EU,GoldmanSacksreport,BCGanalysisTimelineAffectedregionalmarketsForeigninvestmentallowedForeignplayeswantingtoinvestintheChinesemobileindustryhavetoinvestinexistingoperatorsWTOCHINA’SWTOAGREEMENTINCLUDESATHIRDLOCALPLAYERISLIKELYTOENTERTHE

MARKETINADDITIONTOFOREIGNCOMPETITORSCMCCUnicom3rdplayer+IntensifyinternalcompetitiontostrengthenlocalplayerOpeninguptoMNCsCompetitionwillbeintensifiedforCMCCandUnicomevenbeforeforeignplayersenterMNCMarketCNCApprovedCMCCandUnicomtogoIPOinoverseasmarketstoraisecapitalAwardedGreatWall’sassets(formerPLAownedcellularoperator)toUnicomThirdcellularoperatorlicenseisexpectedtobeissuedanditiswidelyanticipatedthatChinaTelecomwillbethecandidatePLA:PeopleLiberationArmyGovernmentactionssofar...Governmentplansgoingforward...WTOATHIRDLOCALPLAYERISLIKELYTELECOMOPERATORSELSEWHEREHAVEBEENHIT

HARDASCOMPETITIONINTENSIFIESSource:MerrillLynch,BCGanalysisSmarToneinHongKongCellnetintheUKSmarToneshareofnewsubscribersCellnetshareofnewsubscribers9/966monthslater3/96OneYearLaterImpactedbylaunchofcompetitor’sCDMAserviceImpactedbycompetitor’simprovementofnetworkcoverageandqualityWTOTELECOMOPERATORSELSEWHEREHACURRENTLYCMCCDOMINATESTHEMARKET

BUTCHINAUNICOMGROWSFAST...CMCCcurrentlytheclearmarketleader...…butChinaUnicomcatchingupfastMarketshare(%)CMCCChinaUnicomOtherSubscribergrowthrate%UnicomCMCCSource:GoldmanSachsReport,BCGanalysisCompetitionCURRENTLYCMCCDOMINATESTHEM...HOWEVER,UNICOMHASNOTBUILTUPANY

SIGNIFICANTREGIONALSTRONGHOLDSSOFARMarketshareTotal#ofsubscribersChinaUnicomCMCCGuangdongZhejiangJiangsuLiaoningShandongFujianHenanShanghaiHebeiBeijingGuangxiTianjinHainan18%(1)

(1)InCMCC(HK)’smarket,ChinaUnicomtookanaveragemarketshareof12%40%Competition...HOWEVER,UNICOMHASNOTBUALTHOUGHTHEPERSPECTIVEOFSTANDARDMIGRATION

ISVAGUE,CHINAISFASTAPPROACHING3G2G(28.8K/second)GSM(supportedbyEricsson,Nokia)PDCCDMAone(supportedbyQualcomm)3G(384K~2M/second)TD-SCDMA(supportedbyDaTang,Siemens)WCDMA(SupportedbyEricsson,Nokia,NITDoCoMo)CDMA20003X(supportedbyQualcomm)2.5G(64K~144K/second)GPRSCDMA20001XNow2000/20012001/2002ChinaEuropeJapanUSATechnologyALTHOUGHTHEPERSPECTIVEOFSTWirelessdatagrowthforecastsUSWirelessdatagrowthforecastsEuropeTHEADVENTOFWIRELESSDATAWILLDRIVEGROWTH

ServiceOfferingsWillBecomeMoreComplexAsaResultUserpenetration

%(1)

Userpenetration

%(1)

(1)OfTotalPopulationTechnologyWirelessdatagrowthforecastsEXAMPLE:I-MODESUCCESSINJAPANHASINCREASED

SERVICEANDTECHNOLOGYDEMANDSONHR

Java,SSLIMT-200018(Numberofusers,

million)1614121086420Mar.31,

1999Mar.31,

2000Mar.31,

2001Mar.31,

2002Note: i-modeusersbaseduponDoCoMoforecast,web&e-mailusersfromNikkeiMarketAccessJan.1999Source: NikkeiNetBusinessMar.2000Mar.1999

20KusersMar.2000

4.8Musers

(Actual)Mar.2001

10Musers

(Estimate)Mar.2002

15Musers(Estimate)E-mailWebi-mode

Numberofi-modeusers

exceedthatofwebusers

bySpring2001TechnologyEXAMPLE:I-MODESUCCESSINJAPALONGWITHTHETECHNOLOGYDEVELOPMENT

WIRELESSAIMSATALARGERSHAREOFWALLET

MarketExample:Sweden(1)ThroughoperatorSource:SCB(SwedishStatisticalBureau);BCGanalysisandestimateOtherCommunicationRecreationHealth,transportandeducationHousingandfurnitureFoodandclothingOtherCommunicationRecreationHealth,transportandeducationHousingandfurnitureFoodandclothingOtherCommunicationRecreationHealth,transportandeducationHousingandfurnitureFoodandclothing1G2G3GOperatorOperatorSpecialserviceprovider(1)OperatorServiceprovidersContentprovidersRetailersMain

recipient:(%)(%)(%)BusinessmigrationALONGWITHTHETECHNOLOGYDEVETRADITIONALBUSINESSBORDERSCHANGE...Middle

layer/packagingInfra-

structure/distributionNetworkdeviceUserdeviceBroadcasting/MediaTelecommunicationPC/InternetOthersContentFilmWebsite/e-commercePCsoftwareMobilephoneTelephoneGamingVisualAudioPC

hardwareSet-

top

boxTransmissionSatelliteCATVTerrestrialMobilecarriertodayPhotographyMappingCar(Navigation/ITS)BooksBroadcastingPortalValueaddedservicesInternettelephonyP

B

XS

w

i

t

c

hLAN•

WANequip-

mentSecurityECrelatedISPECrelatedRadioLongDist-

anceRegi-

onalAcc-

essBusinessmigrationTRADITIONALBUSINESSBORDERSC...ANDTELCO&MEDIAVALUECHAINSAREMERGING

ANDDECONSTRUCTINGASARESULTServiceprovisionAccessandtransferNetwork

ServiceproviderAServiceproviderBNetworkBContentAContentBContentCContentDNavigationNetworkPackagingIntegratedoperatorServiceproviders1G2G3GValuechaindevelopmentTypicalcharacteristicsPackagingNetworkOnesupplierLimitedservices(IN-type)ClosednetworkFewsuppliers(usuallyonecoveringwholerange)Limitedservices(voiceIN,basicvoiceandtextmessaging)MostlyclosednetworkwithsomeinteroperabilitySeparationbetweentransportandserviceinherentinarchitectureMultiplesuppliersineachregionTransportcommoditizedOpencommunicationstandardsbetweennetworksandservicesNetworkASource:BCGexperienceBusinessmigration...ANDTELCO&MEDIAVALUECHMARKETSFOLLOWDISTINCTPATTERNSAS

CUSTOMERPENETRATIONINCREASES*Korea’sexceptionalforecastedgrowthattributabletoaggressivepromotionofCDMASource: InternationalTelecommunicationsUnion,BCGanalysis ForecastedAnnualGrowth(1996-2000)(%)CellularPenetration(per100inhabitants)PHASEIHyperGrowthPHASEIIHighGrowthPHASEIIIModerateGrowthIndonesiaCambodiaPakistanChinaVietnamPhilippinesThailandMalaysiaTaiwanKorea*SingaporeHongKongNewZealandAustraliaIndiaCustomerserviceMARKETSFOLLOWDISTINCTPATTER...ANDKEYSTRATEGYISSUESCHANGEOVERTIMECellularpenetrationSubscribergrowth(p.a.)CustomerprofileKeystrategyissues<3%>50%High-valueManagerapidexpansionBuildoutnetworkEstablishbasiccompanyinfrastructureandprocessesCapturemaximummarketshare<10%~40%Medium-valueAcquireandretainthebestcustomersAchieveexcellenceinreliabilityandserviceBegintodifferentiateandsegmentcustomerbaseCultivatethebrand>10%<35%MassmarketIdentifyandownkeysegmentsofcustomerbaseForgestrategicpartnershipsforofferingsthatgobeyondtelephonyUtilizetechnologicalchangestrategicallytoowncustomersPhaseI:HyperGrowth“Getinthegame”PhaseII:HighGrowth“Masterthegame”PhaseIII:ModerateGrowth“Changethegame”Customerservice...ANDKEYSTRATEGYISSUESCHEXAMPLE:MIGRATIONOFHONGKONGCELLULARMARKET

SmarTonewithSignificantCustomerServiceDevelopment(1996-2001)1996GreaterChinaroamingRealEstatemessageMobilefaxPrepaidserviceInternational(88countiesroaming)199719981999CNNnewsPrepaidcardroamingStockexchangeWAPbidGPRstest20002001PrepaidvoicemailAutomaticgreaterChinaroamingNorthAmericaroamingJapanroamingBankaccountmessageStockmessageserviceWAPserviceFutureoptionexchangeserviceMedicalonlineWAPbookstoreInterna-tioanlroamingtollfreeNo.WAProamingTechnicalValueaddedCustomerserviceCustomerserviceEXAMPLE:MIGRATIONOFHONGKONCONTENTHypothesesonChinamobilephonemarketBCG’sapproachtoHRstrategyProjectapproachandstructureBCGqualificationandexperienceAppendixSelectedCVsCONTENTHypothesesonChinamobBCGHASANINTEGRATEDFRAMEWORKTOHRSTRATEGYTHATWILLBEAPPLIEDTOCHINAMOBILE’SPROJECT

SummaryofsubsequentProposalSectionBCGHASANINTEGRATEDFRAMEWORHUMANRESOURCEMANAGEMENTMUSTBEDRIVENBY

BUSINESSNEEDS...Business

strategyImprovedcompetitiveness&marketvalueCoreHumanResourceProcessPerformancemanagementPerformancemeasurementAppraisalprogramCompensationIncentivesRequirementdefinitionSizingJobdescriptionOutsourcingSourcingandplacementRecruitmentPlacementTransfersEmployeedevelopmentJobgradingCareermanagementSuccessionplanningTrainingLeadership&cultureHUMANRESOURCEMANAGEMENTMUST...ANDFOLLOWTHROUGHASYSTEMATICPROCEDUREHRPlanningProcessImpactonjobcontentHeadcountplanningWhatimpactdothebusinessgoalshaveontheorganizationalstructure?Whatarethebusinessgoals?Definedgoals/

agreedtargetsdowntojoblevelJobdescription,

evaluationHRplanning

intermsofquantityHRReview

at"other"

divisionsAdditionaland

disappearingpositions

Retirements

Transfers

Terminations

ResourcemanagementHRplanning

intermsofqualityWhatrequirementsarethere

forthetargetgroup?professionalpersonalHowwilltheserequirements

develop?Actualvs.planned

comparisonTowhatextenthavethepresentandfuturerequirementsbeenmet?EmployeeportfoliosTrackingofnewemployeesEvaluationofpotentialSuccessorplanningCriteriacatalogforrecruitmentevaluation/

assessmentResultsofthe

evaluationand

assessmentWhohaspotential?Forwhichposition(withindivision/cross-divisional)?When?Whichrequirementshavenotbeenmetyet?Whatmeasuresarerequired?Careerintentionofthepotentialcandidates(careerinterviews)ConsequencesTargetgroup-specificdevelopmentprogramsrecruitmentprogramsControllingtheexecutionofagreedconsequencesRecruitmentDevelopmentmeasuresCompensation...ANDFOLLOWTHROUGHASYSTESTEPI:REQUIREMENTDEFINITIONLeadership&cultureAlignworkforceplanningtostrategicrequirementJobcategorySizebycategorySkills,behavior,capabilityrequirementbycategoryOngoingreviewingandaligningqualificationiscrucialSourcingandplacementRecruitmentPlacementTransfersPerformancemanagementPerformancemeasurementAppraisalprogramCompensationIncentivesRequirementdefinitionSizingJobdescriptionOutsourcingEmployeedevelopmentJobgradingCareermanagementSuccessionplanningTrainingSTEPI:REQUIREMENTDEFINITIOALIGNINGQUALIFICATIONSWITHTHESTRATEGICREQUIRE-MENTSISTHEFUNDAMENTALTASKINHRMANAGEMENT1. Whatqualificationsdoestheimplementationrequireofyourstrategytodayandinthedaystocome?2. Whatcapabilitiesdoyouremployeescurrentlyhaveparticularlycomparedtoyourmaincompetitors?3. Doyouknowwhichgapsinyouremployeesqualificationsarecritical?4. Areyouusingsuitablemeasurestobridgeanystrategicgapsintermsofstaffqualifications?Challenge:

MatchingstrategicrequirementsCurrentrequire-mentsCurrentqualifi-cationsConstantqualifi-cationsFuturerequire-mentsStrategic

realignmentJob

categoriesKeyquestionsALIGNINGQUALIFICATIONSWITHTSEGMENTATIONANDPRIORITIZATIONOFJOBCATEGORIES

KEYPARTOFWORKFORCEPLANNINGCompanyboundaryEachpatternedboxindicatesajobfamilyJobcategoryInternalorganizationExternallaboursourcesManagementEngineersTechniciansOperatorsAccountrepsServicerepsClericalR&DEngineeringOperationsSalesCustomerserviceContractorsTempsSEGMENTATIONANDPRIORITIZATIOSKILLREQUIREMENTDEFINITIONISBASISFOR

FURTHERHRACTIONPersonalityLeadershipskills• Abilitytolearn• Commitment• Integrity• Stressmanagement• Targetsetting• Problemsolving• Resourcemanagement• RolemodelRecruitingSelectionEvaluationDevelopmentOutplacement

Socialskills

•Interpersonalskills•Optimisticrealism

Professionalskills

•Productknowledge•Salesknowledge•Marketknowledge•EntrepreneurshipSkillrequirementsSKILLREQUIREMENTDEFINITIONISTEP2:SOURCINGANDPLACEMENTRequirementdefinitionSizingJobdescriptionOutsourcingWorkforceplanningandstaffingprocessresultinrecruitingneedsRecruitingshouldconsiderallpossiblechannels/approachesInternalpoolcanbeanimportant/sourceoftalentRecruitingprocesscanberefinedtomatchupwithbestpracticeSourcingandplacementRecruitmentPlacementTransfersLeadership&culturePerformancemanagementPerformancemeasurementAppraisalprogramCompensationIncentivesEmployeedevelopmentJobgradingCareermanagementSuccessionplanningTrainingSTEP2:SOURCINGANDPLACEMENASTANDARDIZEDSTAFFINGPROCESSISCRUCIALCharacteristicsStandardizedprocesswithinyearStrategy-basedstaffingprocessBottom-upandtop-downprocessStaffingofhighpotentialsimportantissueEncouragementofindividualtalentsHighlyinteractiveprocessDecisiontakesinaccountBudgetsTalentsTechnology“Session1:

Strategy”“Session3:

OperatingPlan”“Session4:

Compliance”“Session2:

Organization/

Staffing”“HRVision:Attraction,DevelopmentandRetentionofBestDiverseandGlobalTalent”StaffingprocessmightresultinrecruitingneedSource:InterviewsatGEASTANDARDIZEDSTAFFINGPROCESRECRUITMENTSHOULDCONSIDERALLPOSSIBLECHANNELSPotentialcandidatescoveredbyHRReview?RecruitmentchannelsRecruitmentchannelsInternalrecruitmentExternalrecruitmentResultsoftheHRReview(successorplanningundrecruitmentdecisions)InternalvacancylistYesNo

HRReviewresultsforowndivisionOwninformal

evaluationofpotentialHRReviewresultsforotherdivisionsDiscussionofpotential

withotherdivisionsJobadsLaborofficesEducational

institutionsHeadhuntersUniversitycontactsInternshipsDoctoratesFoundationsJobexchangesRecommendationsRecruitmentof

temporaryworkersSelectionprocessMethodsPaperscreen/applicationformInterviewsACWorkshopsPresentationsSampleworkTestsPeopleinvolvedLine

supervisorsHR

departmentCo-workersExternalsAidsCriterialistsInterviewguidesObservation

sheetsSelection

modelRecruitment

marketing

conceptInternalresourceshastobegivenafairchanceRECRUITMENTSHOULDCONSIDERALMISTAKESANDBESTPRACTICEINRECRUITINGTypicaltrade-offsTypicaltrapsBestpracticeGoalFillthejobquicklyvs.taketimetofindthebestcandidateMissidentifyingthecritical

positionsHirethefirstbestcandidate

insteadofwaitingfortherightoneProvidethenumberandqualityof

employeesneededtomeetthe

short-andlong-termbusiness

goalsResourcesIncludetherightpeopleintheselectionprocessvs.investlittle

timeininterviewsToomany,andthewrong,

interviewerswhocannotcometo

adecisionThoseresponsibleforlinemanage-

mentalsoresponsibleforrecruit-

mentandhiring–HRprovides

supportProcessExtensivesearchvs.restrictions

ontimeandfinancesAwakentoohighexpectationsvs.beingtoohonestThemosthighlyqualified

applicantvs.theonethatfitsbestOverestimateexternalapplicants,

underestimateinternalapplicantsWrongexpectationsleadtothe

personleavingagainsoonNeglect"follow-up"afterofferInternalapplicantshaveafairchanceApplicantsaregivenenoughinfor-

mationtoknowwhethertoenteror

exittheprocessApplicantsarenotselectedonthe

basisofonlyexperienceand

qualifications,butalsoonthebasis

oftheir"fit"Thewholeprocessisoptimally"orchestrated"Integrationin

HRsystemTakealotoftimeforselectionof

employees,littlefortrainingCandidatesarenotsufficientlyrewardedortrainedSelectionofemployeeslinkedtoplanning,training,...EvaluationTimespentonevaluationvs.valueHighlevelsofinvestmentnot

checkedThesuccessofrecruitmentis

checkedregularlySource:BCGanalysesMISTAKESANDBESTPRACTICEINSTEP3:PERFORMANCEMEASUREMENTSourcingandplacementRecruitmentPlacementTransfersRequirementdefinitionSizingJobdescriptionOutsourcingLeadership&culturePerformancemeasurementRegularperformancemeasurementsystemtobeinplaceannualappraisal,mid-yearprogressreview360°feedbackPerformancecriteriavaryagainstbusinessobjectives,pre-determinedtargetagainstskillsetLinkpaytoperformanceCompensation/incentiveIncentivecompensationmodelsdifferalongwhoiseligiblebasisofreward;components,mix,targetsettingPerformancemanagementPerformancemeasurementAppraisalprogramCompensationIncentivesEmployeedevelopmentJobgradingCareermanagementSuccessionplanningTrainingSTEP3:PERFORMANCEMEASUREMEREGULARPERFORMANCEMEASUREMENTSYSTEM

NEEDSTOBEINPLACEOwnassessmentManager’sassessmentYearlycareer

developmentdiscussion(1)

Eachindividualassesseshis/hercurrentlevelforeachcompetencyThemanagerassesseshis/heremployee’scurrentlevelforeachcompetencyDiscussionofcurrentlevelofcompetenciestoestablishdevelopmentneedscomparedtotargetprofileforcurrentand/orpossiblefuturejob(1)Appropriatealsotousethisoccasiontodiscussobjectives/resultsotherthanthoserelatedtocompetencies(2)Shouldagreementnotbepossible,twodifferentscoresarerecordedOutput:Agreed-uponCompetencyprofilefortheemployee(2)

LinemanagementawarenessandownershipofdevelopmentneedsEmployeeinvolvementinowndevelopmentandcareermanagementREGULARPERFORMANCEMEASUREMENBESTPRACTICESPERFORMANCEMEASUREMENTANDFEEDBACKObjectivesResourcesGoalsettingPerformancefeedbackEvaluationBestpracticesPerformancemeasurementandfeedbacksystemisdrivenbybusinessgoals- UltimatelystakeholdervaluecreationSystemisownedanddrivenbylinemanagement- HRfunctionsupportswithtraining,guidelines,andtoolsWhileobjectivesneedtobealignedwithstakeholderreturns,theyneedtobesuitableforthelevel/individual- needtobemeasurableandcontrollablebyemployees- needtoidentifyafew,significantobjectivesforeachemployeeGoalsstrikeappropriatebalancebetweenresultsandbehaviour-orientationCombinationoftop-downandbottom-upprocessensureseffectivecommunicationandtranslationofbusinessgoalsWrittenperformancecontractspecifiesafewcriticalgoalstobeusedinformalperformanceappraisalEachemployeeshouldreceiveformalperformancereviewatleastonceayearFeedbackshouldbeongoingandtimely,focusingoncoaching,notcontrolSupervisorsrequiredtosolicitmultiplesourcesoffeedback

(upto360°)- self-assessment,supervisor,highersupervisor,subordinates,peers,externalandinternalcustomersNoforcedrankingofemployeesMonitoringofsystemquality,cost,andimpact(surveys,audits)- systemattracts,motivates,andretainsbetterperformance- systemiskeptsimpleanduser-friendlytominimisefull

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