makalah seminar 07102006

8/8/2019 Makalah Seminar 07102006

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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


ResultsResults


NeedsNeeds




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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



Economic Performance


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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



Government Efficiency


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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



Business Efficiency


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


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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



Are Indonesian peopleliabilities or assets ?

Are Indonesian peopleliabilities or assets ?

The Question is ..


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People Management Movement


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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems




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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



The Competency Defined

Underlying characteristics of people that iscausally related to criterion-referencedeffective and/or superior performance


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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



W hat is The Biggest Challenge?


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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



5 Major I ssues on Rew ard System Development

Reward Philosophy

Reward Plan Design Reward Assessment Reward Form

Reward Delivery


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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



Aligning Reward Systemon Human Capital Strategy

VisionVisionCustomerandCustomerand MissionMission VisionVision

CustomerandCustomerand MissionMission


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ResultsResults


NeedsNeeds




SystemsSystems



ResultsResults


NeedsNeeds




SystemsSystems



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


ResultsResults

Other Stakeholder Other Stakeholder NeedsNeeds


ValuesValues


SystemsSystems

StrategyStrategy


ResultsResults



ValuesValues


SystemsSystems



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


VisionVision

SSt tCustomer andCustomer and

Other StakeholderOther StakeholderMissionMissionValuesValues


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StrategyStrategy


ResultsResults



ValuesValues


SystemsSystems

StrategyStrategy


ResultsResults



ValuesValues


SystemsSystems



Rew ard Assessment on Human Capital Strategy

Job Emphasis vs Person Emphasis ?

Person Emphasis ! Education vs Competency?

Education, Experience & Competency!


Customer andCustomer andOther StakeholderOther Stakeholder


VisionVision

StrategyStrategyCustomer andCustomer and

Other StakeholderOther Stakeholder MissionMissionValuesValues


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StrategyStrategy


ResultsResults

Other Stakeholder NeedsNeeds



SystemsSystems

StrategyStrategy


ResultsResults

Other Stakeholder NeedsNeeds



SystemsSystems



Rew ard Form on Human Capital Strategy

Monetary vs Non-monetary Rewards?

Both! Fix vs Variable Reward?

Variable!

Individual vs Team Reward? Individual!



dN d


VisionVision

StrategyStrategyCustomer andCustomer and

Other Stakeholder Other Stakeholder dN d



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ResultsResults

NeedsNeeds



SystemsSystems


ResultsResults

NeedsNeeds



SystemsSystems



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

makalah seminar 07102006

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