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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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