30th December 2018

Session 1
0333-3888671 saad@hascol.com

Company resources/assets: anything of value

 Customers
 People
 Plant, equipment and land
 Investments, financial strength
 Knowledge, technology
 Partners , JV
 Brands, corporate reputation
 Certifications, compliance with standards
 Systems, procedures

Human resource: inclusive of management

 HR: resource which manages all other resources

 Human beings for decision making
 Irreplaceable – unique
 Sustainable, long term, irreversible (acquire and grow competencies to become more capable
and increase on performance), competitive advantage - only long term resource which cannot
be copied
 Culture of the organization
 Managing emotions
 Given capacity to decide, write

Management: related to planning, organizing, controlling, and directing POCD

Professional: known by qualifications/certifications recognized by a professional body which also has

grades – understanding the theory, knowledge, and practices behind a field – to understand science,
technology, and practices.

 Human beings can only be managers if they are professionally qualified enough to be, especially
HR managers
 Professional knowledge about functions of HR systems
o Organization and design
o Recruitment and staffing
o Employee relations
o Compensation management
o Training
Science is knowledge. Technology is the application of science.

Culture: visible depiction or demonstration of the habits of people in an organization. Habits come from
perpetual practices. Practices stem from the organizations philosophy which stems from values which
are determined by the people who own the organization (anyone who has a stake in the organization –
employees, customers, regulatory bodies). From the philosophy the organization generates a vision.
Certain mission to achieve that vision with a framework in order to attain it. Strategy has to be
implemented through practice done within the framework of operating procedures. Visible behavior of
people in the organization.

HR in the 21st Century

Objectives:

 Knowledge, theory, concepts, processes and practices

 Identifying sources of information and using them
 Class interaction
 Practical applications

For long term leadership they should have the best human capital in the industry and ensure it’s not
used by competitors

Cycle of human services: starts from when person is born to when he dies. Preparation to become a
person in the workforce and after retirement enjoying fruit of labour.

 Purpose of HR is to manage this cycle – ensuring the people we recruit are recruited for the right
positions – their specifications match the specifications of the job and are therefore able to do
the tasks embedded in the job.
 Performance metrics based on the job descriptions – KPIs, standards – needs to be done
quantitatively
 Promotion: to those who deliver according to the dimensions – people who extends
competencies to work at the position they want to be promoted to.
o Performance related to two things: ability to perform well at existing job and improving
self to fulfill next level job.
o Not based on age or experience, instead based on skills, capabilities, competencies – a
greater capacity to perform

Evolution of markets:

 Unmet needs of customers causes rise of organizations – exist to serve customers in unmet
markets. These markets spatially do not have constraints and they have evolved in two ways:
o Moved from barter to become production centers. Some didn’t focus on one product,
then multiple businesses, then expanded across the boundaries of the country.
 o Businesses are changing in response to the marketing environment

21st century:

 Dominated by internet technology

 Need people with intellectual capital: to adapt and think – strategize and come up with solution
 Empower: more capacity to work, prone to boredom, should be let loose purposefully and
meaningfully – continuously challenge them mentally to bring unique solutions
 Difference in human capital that are hired, retained, and motivated. Should deliver more in this
environment that they were doing in the past. Fresh entrants should be adaptable to fast
changing environment – people who can work in different functions and can work across the
organizations to improve it
 Alliances and partnerships: No organizations can be self-sufficient.
 Data no longer as private as one believes – available to different organizations for different
purposes
 Rapid changes – post digital age. Using information spatially, socially, geographically

Economies of scale: higher the volume, the lower the unit cost

Economies of specializations: organizations that develop certain technologies develop barriers to entry –
huge cost for competitors to develop technology and then use it for manufacturing and marketing. Able
to produce more and more at less and less cost over time.

6TH January 2019

Session 2
Competencies: skills, knowledge, and attitude & abilities – application of knowledge that leads to skills
but that is not sufficient on the job unless you have the right attitude. Congruency of the persons values
with the values of the organization – if there is a disconnect the attitude is considered negative.

Leads to

Capability to perform

Human resource is most valuable one of the organization because others can be bought, acquired.
Whereas human resource cannot be bought, it can only be rented. Companies like Blackberry that
cannot attract, retain, and develop resource fail.
Employee Development: everything changes as customers and their needs change – causing the market
to change. Organizations that are supplying products have to respond to the changing needs of
customers, quickly and efficiently and provide better service than competitors. And they can only do this
if each and every person in the organization is constantly developing his/her competencies. Otherwise
organization will remain at the same level and competition will take over.

Agha Hassan Abidi: amongst the first professional manager in Pakistan. Founder of banking investment
in Pakistan – formed BCCI. Not largest bank because of vested interest. Believed only way to develop at
organization is to develop its people. Profits come through human resources – outcome not goal.

Human capital: capital is a productive asset whereas resources can be depleted. Capital gives a return.
It’s an asset that adds to the production, efficiency, outlook of the organization.

People: customers and employees are people – human to human equation. Important to understand
human beings within an organization. Customers buy because they want benefits that satisfy needs.

People needed:

 Multi-specialist people needed – no chief in any one function. Multi-functional to adapt to

technologies that are cross functional – can no longer work in silos as functions now have
overlaps and work along with each other. Competencies and skillsets have to be much higher.
 Proactive people who can predict and react to change – even lead it – ready for it before it
occurs.
 People who can apply technology that are changing rapidly
 INTELLECTUAL: intelligence to understand the change and knowhow and its application – high IQ
and EQ with the ability to absorb and apply what’s happening in the world.
 People who can manage their time

Science: body of knowledge which has been compiled through human observation, compilation,
analysis, reproduction, standardization, into a body. Containing theories, systems. Now no longer
confined – spatially and internationally accessible.

Technology: application to use that knowledge to deliver solutions

Management of people: utilization of human resources in order to develop an organization to achieve a

competitive advantage within the environment of the 21st century undergoing constant change.

 Plan: organization has a reason for existence – corporate objectives – need a plan in order to
achieve them. This plan contains the human resource. Human capital needs to be planned.
 Organize
 Control
 Direct/lead

Human capital > offer benefits to customers > gain competitive advantage > to earn profits
Objectives of Employees and Employers: HRM manages difference between the objectives.

 Organizations objective: want growth and return – profits and a return on investment.
Expansion of the business – reputation, financial, physical. Definition of success includes both
monetary and in means of doing business.
 Employee objective: personal and professional – related to the individual. Not to provide
growth to the organization – want a higher organizational standing and in order to have a better
standard of living. Want career, security, social standing – recognition amongst peers and family.
Normally only there to work and not to enjoy themselves.

Job: series of tasks performed by people who have the right competencies in an environment of
continuous learning developing the person for the next job.

 Job specification: related to the personality of the job (HIRE)

o Know how
o Skills
o Attitude/Abilities
 Professionalism
 Values in the company
 Job description (WORK)
o Tasks and duties
o Reporting
o Other characteristics of the job
 Job size: (COMPENSATE – total monetized value of work is remuneration) – system of measuring
knowhow, skill,
o Value or worth of the job that a person creates
 Know how (technical skills, managerial skills, ?)
 Skills (application of knowledge leading to problem solving)
 Accountable

Objectives for both employer and employee. Purpose of an organization is to achieve profit through
customer satisfaction – through CS you can get a large base of customers. Sustained profits leads to
reputation of the management of the management, company, brand.

Compensation for the time the person gives on the job – pay for services rented.

Disputes > disagreements > conflicts > separation – when employee is unaware is unaware of job size
and when their compensation is not proven to them

Solving Grievances:
  Expectations: Management of expectations – follow career and build it – trust with employees
regarding their future. Guiding and coaching them continuously. Managing the professional life
of the team members by parenting the professional career of your subordinates.
 Environment: Inefficiencies within business practices – not enough of resources to do job.
Anything related to the environment – business process, design, canteen food, supervisor,
colleagues. More human. Need to figure out a means of conflict resolution and not allow the
mistakes to become blunders. Managing people from hiring to retirement.
 Transparent, documented, fair, measurable, process for performance and compensation
management.

HR Functions:

 Training and development

 Performance management
 Organization development
 HR operations
 Recruitment and selection
 Compensation and benefits

Organization: both have to be integrated

 Plan: broken into functional responsibilities and given as departmental objectives – cascade
down within the sections to each and every employee – sum of all the cascaded objective is
equal to the corporate objective
 People: right people in the right structure with the right competencies – through job
descriptions.
 BOD: corporate goals
o CEO: develops structure for the organization – corporate goals into strategy
Strategy: military word meaning to kill the enemy – or competitors, in this case. How to
beat the competition in achieving corporate goals.
Structure: each department head informs corporate planning regarding needs or
employees and ideal structure. Each position is an intersection of vertical (hierarchy)
and horizontal (different functions) – defining title of the position.
Hiring: people of the right competencies to fill the roles and titles in the organization
structure – need to know the specifications of the job holder. Know how, qualifications,
skills dependent on time of application. Looking the managerial competencies and
knowledge. Physical check, cultural fit, adaptability,
 CFO
 CMO
 CEng
 COO
  CHRO
 Corporate planning: developed using all departments
Job specification
Job description: tasks that the holder needs to perform – targets and
deliverables
Job size measuring the size of the job
 HR
o Recruitment
o Performance management
o Organization development
o Compensation and benefits
o Employee retention


Plan: activity, time, person, outcome

Strategy for company and for HR are integrated

Assignment 1: apply, discuss and critique the HR strategy of the company selected through the diagram
“effective HR Strategy formulation and implementation” slide 32?

 Place HR strategy in the center – what is the HR strategy? Compared to the competition how are
they going to use the human capital to beat the competition? In having better human capital?
Purposes.
 To implement these strategies what is the fit with the organizational capabilities? Do they have
the financial strength to pay for the human capital?
 Organizational characteristics: not professional but want to become a multinational culture –
can’t if they are Pakistani proprietorship – element of misfit
 Give recommendations – gaps and pros and cons and how to fill in the gaps
 PCM ASSIGNMENT 1 NAME NUMBER on first sheet
 Size 12 – 5-10 pages
 Card on card paper with pictures

13th January 2019

Session 3
Three types of equity when compensating employees:

 Internal: everyone in the same grade should have the same benefits but not the same salary
  External: externally competitive and fair in the industry
 Individual: based on individual performance

Politics: exercise of power – cumulative delegation of power – they become legal representatives of
others since they are voted in. Normal has systems, procedures, and policies.

Internal customers: employees work in the organization to deliver – interest in work life balance and
increasing their productivity to increase their performance which leads to increase in benefits which
improves life and work. Career in their work and better standard of living. Important that they
continuously improve their productivity to increase their performance and lead to business success.

 Work life balance: purpose, strategy, plan and outcome of life are determined by the individual.
Impacted by stakeholders. Builds the persons concept of life. Work enables us to spend our lives
the way we want
 Managers are not just responsible to generate performance – it is also to achieve personal life
goals – increase level of satisfaction after work therefore have to build worklife balance –
provide benefits that will fit personal aspirations

External customers: generate revenues, profits and reputation for company and brand ensuring success
of business

Pool > candidates > prospective employees > employees (when they join and are given JDs)

Outcomes of HRM practices:

 Productivity: doing more with less – working harder not smarter – same input different outputs
– continuous improvement is a mindset rather than an action and extends beyond work into
daily life – kaizen -
 Quality of Work life: relationships within the organization to get satisfaction without – conflict
resolution on principals not personalized (subjective), and positions
 Profit: doing this on a continuous basis develops trust

Trust: commitments will be met, someone who will deliver, established a history of performance,

Trust < repeated performance < consistent delivery of results < understanding of expectations of both
parties < communication

If number of positive episodes are greater in volume, significance, impact then the relationship gets built
and is stronger and less degree of contempt, disruption and becomes reliable – same delivery of
performance time and time again.

Performance management: both employee and employer repeat desirable performance over and over

Management of assets require management of performance and also reward of the performance
HR no longer isolated back office function, it determines strategy of the organization

HR Professional Roles:

 Strategic partners
 Innovation: environment – happens when many forces work together – primary force is the
human element – HR designs the organization – through job descriptions – not more
standardized compensation instead transpose, transform, till they become unique for
individuals.
 Collaboration:

Managers should create an environment and coach – they change the way people think and behave. Not
to execute the change but to think and conceptualize the change.

Difference between engaged employee and committed employee

Competencies required of HR department to become full strategic partner:

 Leadership: good leader is adaptable and adopt different leadership styles depending on the
sources at that point in time
 Leading the occasion, scene, people and assets in that particular circumstance – most important
is the knowledge of the business – understanding all the processes of the businesses.
Developing people within organizations who have humanistic qualities who understand both the
business and HR.
 Need to have a strategic thinking hat – strategy is to beat the competition – need capable in
leadership qualities, who know the business, and can think strategically.
o Recruitment: making a pool of suitable candidates
o Selection: employing one person out of the pool
 Technology: age of digitization – knowledge being used is technology.

20th January 2019

Session 4
Functions of HR:

 OD, performance management, right sizing

 Recruitment and selection
 Training and development
 Compensation
 Employee relations
Should be emotional, not rational and objective rather than subjective – difference between profession
and jungle HR. even when there is a decentralized system, need to have parameters and policies.

Owners and management – determine the HR policies. If they believe the employees are important they
will adopt a profession HR and will have a congruency of HR and corporate strategy with a close linkages
between the two. They will have formal systems and practices irrespective of size and scope. In
Pakistan, immature organization are immature in HR because people at the helm of affairs do not
understand the role and power of HR in transforming organizations.

 Engro: built from olden days – evolution not entirely in consonance with systemic growth. Too
much focus on the practice rather than the philosophy of it.

Systems for accuracy, speed of decision making, and cross functional cohesion.

Purpose of HR: to improve the performance of employees through development

Managers: coaches – leading to higher performance which will be linked to higher rewards

Need a system that moves out of qualitative and into quantitative – objectivity and tangibility. Rather
than subjectivity. Numbers are more rational than good or bad performance.

Capability: requirement for potential development

Three core areas of HR:

1. Attraction: finding the right human capital for the organization – job analyses, job descriptions,
relating the JD and specification to the type of people we want to employ, looking at the pool of
internal and external applicants, selection process to find candidate to fill the position that we
want.
2. Development More than two thirds is in the development. We hire people on the basis of
potential to grow
3. Retention

Managing expectations: along with the performance. Reality check time and time again – expectations
need to be related so that there are no surprises. In most organizations employees don’t know why they
were rewarded or punished. Should be aware.

Talent: sum total of all the competencies available in an organization

Objectives: are measurable on two parameters

1. Performance: targets – achieved only when people work. Eg. market share
2. Work: skills and tasks which requires application of competencies (knowledge skills and abilities
to do the work)
Strategic plan: from the organization to the individuals. Each person has specific goals. Each person can
only be given goals that he or she is competent to deliver else it is unfair. Unless you train them for the
future. Assess the performance.

Discipline: require corrective actions which is in competencies. Constant feedback. Coach them not as a
boss but instead as a coach.

Reward is separate from the contribution of the employees – summing the contribution of the
employees leads to the organizational success. Each employee has to contribute to the organizations
goals as effectively and efficiently as is required by the company.

Every organization wants to grow but can only do so if the people in the organization also grows along
with it at the same pace to be able to deliver targets. Mutually of benefits.

Performance management process:

Process: series of sequential steps - each outcome should be measurable. Processes should be optimized
rather than the outcome. Rest is implementation. Circle indicates constant improvement

 Expectations: of both parties need to be understood. Of the supervisor and the employee –
common understanding and agreement. In most organizations, the targets are related to the job
rather than to the employee. They are related to the outcomes that the job demands. Good
organizations define targets according to how targets are going to be delivered on the job. How
are the competencies aligned to achieve targets? Also give personal development targets
related to the job and the career path. Only promote the people who are competent enough to
work at the next level and who achieve job targets. Expectations of development process also
set.
 Final review: formal because money and careers are involved – future training, targets,
tangibility.

Desired outcomes:

 Feedback: human nature demands feedback – if good they want appreciation which doesn’t
necessarily have to be monetary. Tells us if we are performing well and indicates areas of
improvement.
 Talent pipeline is preparing for the future. HR is a futuristic, strategic function.
 Embrace: to own, protect, stand by, implement, coach others - if not, you are an impediment in
the flow of the pipeline
 Gape and make rather than gape and ape
 People want: development, fairness, equity, rewards, relationships within the organization.

Performance:

 What: job targets and achievements (Present)

 How: competencies and behavior (Future - potential)
 o Behavior: application of knowhow into skills – need to have values of compliance.
Competencies

Performance based culture:

 Want a culture which is performance driven – no emphasis on anything else. Nothing about the
past – qualifications, educations, relationships – they have already gotten you in the
organization. Henceforth only based on performance – based on future.
 Want to reward people who perform – develop targets as well as themselves – acquire
competencies that hone themselves for the next job proactively.

27th January 2019

Session 5
Assignment 2

Do a detailed critical review on the performance management system (PMS) of the company you are
writing your report on (compare it to an ideal system discussed in class and identify the gaps and
weaknesses in the system and give recommendations)

1. Examine the PMS’s purpose, process steps, method of assigning and measuring targets, number
of categories of ranking, assignment of marks and weightage, frequency of appraisals and
approval steps
2. Evaluate how the PMS is used in deciding increments, promotions, bonuses, training and
development, career and succession planning
3. Give recommendations for improvement in each

Objective of a performance management system:

 Development of people
o Increased customer satisfaction > increased profits
 Which will lead to enhancement of competencies
 Increased performance
 Development of the organization – increased output – quantity and quality
 Growth
 Increased
Characteristics of a Performance Management System:

 Fair: Want the performance management system to be fair and given in and out in such an
equitable manner
 Transparent: clear concise, understood by all parties
 Agreement: All targets should have to be agreed – agreement between two parties
 Measurable: targets have to be defined very clearly in the dimensions of the job – once they are
decided there should be a way of measuring performance against those dimensions to clearly
and quantitatively measure the performance – not subjective
 Futuristic: development is a futuristic activity
 Three categories: that the system will decide what to do with in the future – records of the past
– find out what areas they are weak in and target their development – low scorers are part of
the past, middle are part of the present, and outstanding are part of the future
o anything more than three confuse and diffuse the situation – need a distinct clarification

Model of Performance Appraisal:

Identification of Targets

o Corporate objectives
o Departmental targets
o Individual employee targets
 Start from job descriptions (what) – tasks are defined – however doesn’t mention the extent
– how much? What time? How well? And targets are specified on an annual basis since
performance is measured annually – calculated in financial terms annually and rewards are
also annual to be in sync with financial cycle.
 Organogram is structured – goals and objectives based on company core product –
designed afresh – zero base – else caught up in history. Organograms contain jobs
are different hierarchy and function – intersection defines department and function
of the job.
 Type of person we need for the job are job specifications
 Job specifications (how): for the future job as well as current job. Focusing on the
competency gaps and building ones for the next job and job beyond
 Competencies: knowledge, skills, attitude – need to do a personal, individual
analysis
 Reward: unless there is a reward, there is no incentive for an employee to develop –
put that in the target and define specifically what the employee is lacking and
incentivize them to develop themselves to overcome the gaps. Reward those people
on the job who act in accordance with the values of the organization. Employees are
ambassadors of the organization therefore need to maintain the same values on
and off the job.
Feelings: good managers create relationships and linkages with feelings – based on good positive principles
and values.

Driver
Tasks/Targets Measurement/Standards Competencies
Safe driving Number of violations – 0 License, traffic rules
Punctuality Timeliness of assignments – 0 late and 0 early going Time management
Maintenance Number of breakdowns – min 5/yr Read, understand, and execute the
Compliance with manufacturers maintenance manual and develop/follow a
manual schedule
Cost control Mileage/litre for vehicle, terrain, route Driving skills, log book
Courtesy Zero complains Personal hygiene, values of the
organization
Routes Appreciation by user Use of Google maps

Uses of Performance Management:

 Outcome: both administrative and developmental (career - personal to the job holder) decisions
 Promote people who have the competencies to work at the next level
 What kind of rewards and how much
 Terminate people who are not performing continually – help them find another job
 Training and development
 Career planning: target a position when you can become a successor – not necessarily in the same
department – when you have competencies in multiple departments you may have the ability to
become a general manager. Encourage more job rotations so that they are exposed to more
departments are different decision makers – potential to go up in their own and other departments

Challenges to effective performance measurement:

 Politics: defines the authority – to what extent a person can exercise authority in all types of
decision making – good as long as it is not misused for personal reasons
 Effective employee: meets targets 100% of the time in terms of time, cost and quality

Relationship: episodes, interactions, between both parties – number of qualitatively positive episodes
minus number of qualitatively negative episodes. Developing a professional relationship of coach and
mentor with someone who is learning such as your employees. Continuity of positive episodes so that
they are much more than negative episodes.
Before: feedback, encourage subordinate to participate, feed forward by asking for opinions

During: be specific with examples, no golis or hawai firing, active listener, don’t belittle or be
derogatory, reestablish goals for future improvement

After: communicate frequently, depth of relationship determined by how many times a supervisor
meets with subordinates in a day, how many times communication takes place, progression toward
goals and give rewards

24th February 2019

Session 7
Performance management to improve the performance of people by developing them and through this
we are able to understand how to take the maximum work from people and at the same time
maintaining their work life balance. Personal, economic, financial performance is met through work. If
we want to retain them we have to ensure continuity of their development in their competencies.

Stunted growth leads to discontent and dissatisfaction causing a disruption in work.

Ensuring growth with work life balance as well as competency development. Continuous ride on the
learning curve.

Look at the future of the organization – where it wants to go – objectives, targets, strategy, tasks,
position in the market – based on that we define the path the organization has to take in order to
reinvent itself. The reinvention and rejuvenation cannot happen if the people do not do the same for
themselves. People have to transform themselves before the organization can transform.

Shedding those competencies which are no longer relevant for the present and the future – unlearning.
And then relearning. Human beings are emotionally attached to the past and feel a comfort and sense of
achievement in them.

Through performance management figure out areas which we want to unlearn and which we want to
learn. Keeping in mind role of the future. What has been the performance in the past and what is the
focus for the future?

Now there is a great agility in organizations – where they are headed and where the employees want to
head. Culture of long careers has ended unless the organization is able to offer diversity, attraction, and
depth, of the job. The millennial get bored quickly and are impatient – perceive themselves to be the
harbingers of future. They feel like they have a huge amount of intellectual capital – no more silos – time
for multifunctional careers. Job rotation and enrichment. Organizations need to adapt to external
environment as well as managing he internal resource which is going to deliver goods and services to
the external environment.
Leadership has changed – in order to bring about this change, managers have to coach people. In a
world of continuous change, unlearning and relearning. Focused, dedicated coaching = micro-coaching.
Which is not good – there when you need them but not there to pester people. People have to work on
their own and discover themselves. Management has become flexible and agile. Leaders are those to
whom people aspire to – can seek inspiration from. Not top down or bottom up – that is based on
communication, orders, regimes and systems. In the modern world, these don’t exist. Now all people
need is targets and direction – creativity is required from people today which is the opposite of
regimens, standardizations and rules and regulations. Therefore need to coach them as collaborators
who work as equals. Aligning their efforts and garner the multitalented individuals to delivery
organizational objectives.

Man power planning: as managers, we are not fair. We continue to hold people and give them
employment even if they are not competent – don’t want to harm people since it is part of our culture
and tradition. We reward the people who are outstanding but not punishing the people who are not.
Unfair process. If recruitment and selection process if not robust as it needs to be – then need to carry
that person for decades. Subsidizing that person and causing a loss to the organization and creating
internal upheaval and grievances.

 Needs of the organization depend on the needs of the customer, organization objective,
creating an environment in which employees find a new job within the organization every day,
organizational lifecycle – an organization that goes through different stages of the business.
o Strategy – what is its purpose and what its meant to deliver – 30 years
o Midrange perspective that converts strategy into operations – 3-5 years
o Annual performance – current phase – production, human, financial, market, economic
basis – budget- controlled and highly quantifiable document
 The type of people needed at each stage are different:
o Strategists: starts from a concept, ideas and philosophies. Thoughts are conceptualized
into strategies. Need people who have a deep understanding about every aspect of the
business – relevant experience and understanding – in depth knowledge – pundits who
can think about feasibility easily about the project. People who can analyze all the
issues – a lot of brainstorming and discussions are required. Complex, multivariate
decision making – processing variables at intellectual speeds.
o Planners: people who understand operations – organizers. Experts in marketing,
financing, HR – project planning team of specialists. Planning of basic functions of
project or organizations. They work on the conceptualized information and make a plan
and conduct forecasting. Designing organogram, JD, JS, Job sizes, compensation
structure, payscale, define rewards we want to give, what kind of TnD we need to do in
the organization, work place and work space for the people. Look at the people we
have and the ones we want for the future. Need a feasibility to see whether the plan is
doable or not.
o Doers: make a budget after receiving the feasibility. Look at it every month, quarter,
half year depending on the industry. People who actually deliver.
  Demand and supply analysis for recruitment and selection based on the stage the organization
is in.

Organogram: structure with hierarchy on y axis and functions on the x axis – for each function have a
description and specification

Always useful to have people development from within – for succession and career planning. Ideally
should only hire people at the entry level. Retain the cream. Develop people upwards. Hire people who
can be developed internally and culturally.

Hiring from outside makes sense when: costs less, can train people within the organizations, cannot find
the same competencies within the organizations, mergers and acquisitions, plant in new area, new
market, new technology.

Succession planning:

1. Identifying the critical positions in the organization – if they are not occupied the function or the
organization can come to a standstill
2. Should be developing or have developed 2-3 successors so in case of issue can replace – can be
at 70,80,90% readiness – but need to have selected and started grooming and training
3. Figure out people who want to retire, migrate, leave for personal reasons – develop successors

Successors: those who can fit that job – competencies and leadership capacities need to increase.
History in the organization should be suitable. Successors competencies need to be measured by their
annual performance. State of readiness should be built into performance management schedule. Person
should know he is being considered for positions down the road and build upon his or her
competencies.

17th March 2019

Session 9
Agenda: Job analysis leading down to grade structures – determining the pay scale of the company

Financial and non-financial elements of compensation:

 Salaries, benefits, allowances, increments

 Recognition: best employee, profession in the field, additional responsibilities
 Training and development
All benefits, whether visible or invisible, are part of the total remuneration and total cost to the
company – human endeavors are an asset and cost should be part

Compensation mix: Total remuneration

 Salary:
o Basic pay
o Allowances
o Perks: car, medical, tools of job, insurance, travel, house rent, leave, loans, gratuity, PF,
pension,
 Recognition (financial):
o Increments
o Bonuses
o Incentives
o Share options
 Recognition (non-financial)

Scope of the project: project deliverables, and what tasks are required to deliver those deliverables

Market analysis: whether there in any future growth in the market – gap between supply and demand.
Don’t go into any market where there is an oversupply – identify the gap – who are the customers
whose needs are not being met. Identify customers in every segments who have unmet needs that our
company can satisfy

Feasibility: capital cost and operating (variable) cost

 Market analysis: market gap, customers needs for products

 Product Mix: Figuring out configuration of construction plant: location, capacity, raw material
o Quantities of products that need to be produced
o Specifications of each category of product
 Capital cost:
o Technologies: to meet minimum economic size and is compatible with working
environment and requirements. Go to those manufacturers who use that technologies –
get proposals from them
o Location study: land plant and equipment, plant capacity
 Operating cost:
o Employees required:
 Project technical team specialist: structures of the organization or project to
produce the given quantity – will know the roles and the job descriptions
required for production
 Develop a structure: requirements of the organization – levels, hierarchy, grades
 Development of job description making sure no overlap of job roles – making
sure a normal human being can do the job in eight hours of the day
  Ideal organogram
 Number of people, functions, job descriptions, job specification – now put
numbers
 Figure out in the market, what are those peoples compensation and total
remuneration mix
 Get one line item at the end – salaries and wages
o Financial cost: any debt
o Utilities
o Raw materials
o Inventories
o Work in process

Parcipitative management consensus building: using technical experts from each departments to give
their inputs

Job:

 Input: competencies, KNOW HOW (knowledge that is required on the job: education,
experience, certification, specialization)
 Process: SKILL (application of know-how on the job)
 Output: ACCOUNTABILITY (responsibility which is defined in the JD – what we expect from a
person on the job)

Quantitatively measure the three elements

KNOWHOW + SKILL + ACCOUNTABILITY = JOB SIZE

Measuring the job, rather than the person. Measure the person only in the performance management
system.

PCM: Reward people based on performance which is measured quantitatively which tells us categories
of performance of people and in respect to categories have different components of rewards

Job evaluation: figuring out job size of any job in the hierarchy of the organization – not easy to do this

Comparator group – compare job size with those of other organizations (comparators) and see how
they’re being compensated

1. Hierarchy
2. Function
3. Elements
4. 4 elements: description
Hay charts:

 Know how: degree from an award giving institution – professional certification. Recognized by
higher education commission

24th March 2019

Session 10
VMV > Corporate strategy > goals and targets > organizational structure (function wise) > job
description/specification/size > duties and individual targets/recruitment/compensation > JOB
EVALUATION > JOB SIZING (external consultant) > external equity, internal equity, individual equity

Factors that lead to compensation size:

 Accountability
 Know how
 Skills

The scope (shift engineer) and depth (chief engineer design – authority) of the job can be changed

Should get an external consultant to get the job size – benchmark for other jobs

Identification of critical jobs – critical for the ongoing continuity of the business

Graph of job size – clusters – lower job size is a larger cluster with larger ranges of compensation – as
you go up the job sizes the number of jobs and therefore clusters decrease. Right at the top there are
very few people with largest job sizes. Example a lot of trainees (200-400), fewer executives (400-600) or
engineers, even fewer managers (600-1000), handful of general managers (1000-1600), only one CEO
(>1600)

Need to figure out basic salary and total remuneration of each job and link it with the job size

Structure in which job size, basic salary, and total remuneration are related and are also related to
grades

Fairness:

 External equity: industry has several firms working – our employee should not go to the
competition within that industry
 Internal equity: within the organization internally, all people of the same job size should have
the same TR (sum of basic salary, allowances, perks and benefits)
 Individual equity: based on individual performance – the job size increases (higher know how
and skills to do the work of the next level) – all jobs having the same job sizes should get the
 same TR and that’s what makes the whole thing internally fair. Each individual gets a
compensation with regard to the value they are creating for the organization. Judged and given
a grade and TR on time of hiring – after that 5 people at the same grade but one person is
performing better – people who perform are individually rewarded and it becomes part of their
ongoing compensation in the form of increments to the basic salary – therefore the TR also
increases

Grades Titles Job Size Basic Salary Allowances Perks and Benefits TR
I Trainee 200-400 15k-40k … … 56k-100k
II

Raise your bar – look at the market compensation – at the highest position companies in the market.
Your compensation should match the TR of the target company – where you want to be in the future.
Especially if you want to retain and attract the people who will work for the #1 and #2 companies.

Target the TR of the company you want to overtake

Compare the job sizes of competitive company and own company – if there is a difference, there needs
to be a salary adjustment and give a larger TR

Have a graph of percentile vs grades – determine what is the percentile of companies paying more or
less than yours for a certain grade of jobs – may have to target the 75th percentile to be competitive

Different delta of adjustment for each of the grades – according to the market. Has to be done within
the next three years

Need to monitor the rank of the company as you adjust the TR

Happiness in a company based on (in order): first two are more futuristic whereas third is of the present

1. Supervisor
2. Company and reputation
3. Compensation and salary

Assignment 3: whether your company is following the flow chart for designing its current structure – if
not, what should they do?
 A. Evaluate and critique the current compensation structure of the company and check what steps
of the design process have been missed. Recommend actions for designing a professional Job
Size based revised compensation structure
B. Develop the new compensation structure

Draw the flow chart – see if each of the steps has been done – if not done then indicate on the diagram
that it has not been done – what detailed steps have not been made. Where are the gaps in each step in
that flow chart.

FLOWCHART:

Vision mission and values > corporate strategy > goals and targets > organizational structure (function
wise) > job description/specification/size > duties and individual targets/recruitment/compensation >
JOB EVALUATION > JOB SIZING (external consultant) > external equity, internal equity, individual equity

Recommendations should also be in terms of a flow chart. See what is being given priority to. Action
plan.

Number of Grade Titles Job Size Basic Allowance Benefits and Other TR TR
employees Range Pay Range Perks 2016 2019
Range (40% (75%
perc perc
ecnti ecnti
le) le)
1 V CEO >1600
5 VI GMs, 1000 -
Chiefs 1600
20 III Manager, 600-
HOD 1000
100 II Exec, 400-600
300 I Trainees, 200-400 15- 40% = 6k- Motorcycle, 150L, 40- 60-
45k 18k medical coverage 125k 190k
for self and family,
mobile, lunch,
uniform and
shoes,
educational
allowance,

How to go about it:

 Goals: Long term medium term and short term – determined for each department and function
in the organization
 Organization structure: mechanism of delivery of goals – departments with critical roles will
have an expanded structure. Draft
  Defining Jobs: look at jobs and define them – description, specifications and calculate the job
sizes.
o Descriptions: duties and responsibilities, characteristics, deliverables
o Specification: used for recruitment – characteristics for application, attributes,
experience required by a person who can hold that job – hunted and find the person
who can best fit the job
o Sizing: determination of the compensation, tells us the hierarchy, titles or designations
of jobs, the value a job creates, create fairness within the organization and within the
market place: internal (all people on the same level of the hierarchy should receive the
same basic pay, benefits, pay scale) external (competition competition) and individual
(ensure people are rewarded fairly- speed at which people grow depends on speed of
performance – speed of enlargement and enrichment of the job – higher targets means
that the job size keeps increasing) equity
 Identify benchmark jobs for the whole department
 Identify those that are critical for the department or organization
 Pick repetitive jobs
 Three categories combine
 Identify job clusters with the ranges
o
o Targets: based on the job description as well as any gaps in their competencies on time
of hiring
 Recruitment: based on the job specifications you have written down
 Targets: competency targets both for the current job as well as for the future WHAT (JD)
HOW(Specs)
 Job sizing: superimpose ranges of TR – make a plan to increase the compensation structure to
reach the level of the competitor in the market
o Revision of pay policy and constituents of the TR
o Equities

Grade Titles Job Size Basic Pay Allowances Perks and TR Range
Range Range Benefits
CEO
GM
Job Sizes will not change – what will change is the TR. Break down the TR into the pay, allowances, and
perks.

Q: aspiration to go to a certain level and have the following TRs – redesign the current structure – fill up
above chart

Assignment 3 (20 pages)

1. Industry and company intro/background/history

 2. Current ranking in industry, aspirations, strategy, corporate goals, HR strategy (5 pages)
3. Current organogram, future organogram
4. Current PMS > redesign
5. Current compensation structure – redesign for target year
6. Flow chart
7. Action plan: roles, responsibilities, gant chart, timelines

Each has own career ladder and based on job size and position – compensation

Pay lines: reflective of the position of the organization in the industry – supply and demand of different
job roles. As the organization matures the pay ranges moves up on the pay line and the value of the
people in the organization increases – hiring higher value people

Overview of the course

 Role of HR
 How it has transformed dramatically in the last 5-7 years
 Expectations in 21st century organization
 What kind of HR strategies should be evolved to ensure corporate goals and strategies should
align with HR strategies
 Four factors that determine HR strategy: environment, organization characteristics
 If you want an organization to perform it can only perform if it’s people perform – sound robust
transparent documented PMS
 PMS should identify three types of employees – excelling future, performing present, need
improvement past
 PMS to identify the three categories – cascading corporate targets down to the individual cycle
of performance management – appraisals and rewards along with yearlong coaching
 Process of appraisals – how to do it in a manner that is employee friendly and futuristic
 How to use PM to develop employees – training and development, career and succession
planning for talent pipeline for the future
 Rewarding people: three types of rewards (TR, performance, non-financial)– most basic and
essential is the total remuneration
 TR should be fair and equitable – three equities
 Process to develop a pay structure for the equities