Online HR MBA Workbook for Leaders

HR for Leaders|1
Valery Oprya | SPHRi
 Introductions
 Study plan overview
 4 know-hows of HR

I
My
mate
His/her
mate
Personal traits / characteristics we share
Identify what you have in common with your top team members

Your
 Challenges in people management
 Expectations…

Study plan overview
# Theme Tools
1 Introduction to HR 4 know-hows of HR
2 Mission. HR strategy
Model of People Management Maturity
Corporate and personal mission
3 Structure and Roles Job profiling
4 Performance Management What + How of the jobs
5 Reward Management Reward philosophy
6 Talent Management Competency Interview, IDP
7 Leadership Development Leadership Styles, MGSCC, Trust
8 Culture Development Team Development
9 Engagement and effectiveness «Drivers of my business» Survey
10 Exam Film Report
Learning Outcomes
 Analyse people data & systems to take weighted decisions
 Develop people leadership skills to build trust

What is
Human Resource
Management?

People management in organization is a
shared accountability
between leaders and HR professionals.
Moreover, outstanding leaders act in
partnership with HR managers,
apply best people management practices
in daily life and demonstrate their
commitment to using the HR tools
Know-How 1

Do leaders care about HR?
Top 3 executive wishes
How to motivate and retain critical
talents in the team60%
What leadership styles are most
effective56%
How to develop team talents and
manage their career aspirations55%
Source: People Management for Leaders survey by UTC, 2019

Employee experience and people management
How to attract &
select teams
How to drive
performance &
reward teams
How to
develop
teams
How to
manage
careers &
engage
How to serve
a future
success

Best leaders put
people before strategy
being aware that for great business results
they require great teams
Know-How 2

How business strategy is reflected in people strategy
Business
strategy
Business practice
Price driven
competition
To offer the most
competitive price
USP driven
competition
To offer «unique»
product or service
Clientele driven
competition
To create own
customer
Source: HR for Leaders, ISBN: 978-613-8-38407-6, Valery Oprya, 2019
People management strategy
 How to attract people?
 How to retain people?
 How to reward?
 How to reward?
 How to reward?

How business strategy is reflected in people strategy
Business
strategy
Business practice
Price driven
competition
To offer the most
competitive price
USP driven
competition
To offer «unique»
product or service
Clientele driven
competition
To create own
customer
Source: HR for Leaders, ISBN: 978-613-8-38407-6, Valery Oprya, 2019
People management strategy
 Attract people by company and leadership
brand;
 Retain people by culture of team success;
 Reward team efforts
 Attract people by new opportunities;
 Retain people by leadership brand;
 Reward both individual and team efforts
 Attract people by company / leadership brand
and new opportunities;
 Retain people by their personal mission;
 Reward both individual and team efforts;

How does leadership impact
business performance?

Best leaders shape
their circle of influence and manage their
weaknesses to grow
Know-How 3

Engagement
 Impact and Influence
 Understanding others
 Collaboration and
Support
 Confidence in
Communication
 Earning Trust
Approach
 Analytical Thinking
 Conceptual Thinking
 Understanding
Business
 Information
Exploration
 Strategic Thinking
Energy and Emotions
 Agility
 Achievement Drive
 Pro-activeness
 Personal confidence
 Self-management
Based on the Best Behaviors Model identify
one strength, one growth factor, one derailer

Business case: how behaviors help being top business (UTC, 2017)
Analyze presented data and draw the conclusion on
what to develop in top team

How do leaders learn
best of all?

Learning model: alternative by DDI, survey of 13 000 leaders
55
25
20
On-the-job
(experience)
• Learning by doing
• Experimenting
• Being challenged
Informal
(exposure)
• Being coached
• Being mentored
• Social learning
Formal
(education)
• Classroom
learning
• E-Learning
• Self-study

How does leadership impact
people motivation?

Best leaders know whenever they
open their mouth they shape
the organizational culture
Know-How 4

If you are accountable for creating a great team, who would you hire first:
a finance, logistics, administration or HR professional?

HR for Leaders|2
 Business elements
 Corporate and Personal Mission
 Maturity Model of People Management
 HR strategy

Business strategy and people management: drivers of
success
Strategy ResultsLeadership
Management
processes and
systems
Org.structure,
team and job
design
Reward and
recognition
Work processes and
business
systems
Individual
and team
competence
Values and
culture
Vision
Mission
HayGroup
To what extent are these drivers aligned in your business?

Business cycle and people management
Lester, D., Parnell, J. & Carraher, S. (2003). Organizational life cycle: A five-stage empirical scale. International Journal of
Organizational Analysis, 11(4), 339-354
Start-up
Growth
Maturity
Revival
Decline
Sales
Curve
Every stage of development requires:
 New leadership
 New operational model and structure
 New business model
 New skills and competencies
 New performance criteria
 New goals and perspectives

Mission
serves a source for
inspiration
What should your own mission reflect?

Mission serves a source for inspiration
FranklinCovey

My
mission
My
corporate
mission
Mission serves a source for inspiration
Where is the link between your own mission and corporate mission
/ mission of your role?

Challenge your business mission!
Copyright © 2001 Jim Collins. All Rights Reserved.

HR strategy describes
how we create value for our
people

HR strategy is about knowing that all employee experience
aspects matter
How I am
attracted &
selected
How I progress
and what
rewards I get
How I
develop and
transform
How I am
engaged and
promoted
How I serve
my mission
Human experience
Am I effective in managing all these processes?

Kazakhstan practice: HR industry analysis (1)
Basic Progressing Advanced Best practice
Recruitment
and retention
No clear
employer brand
Some employer
brand
differentiation
Strong brand with clear
employee value proposition
Global recruitment strategy
linked to workforce plans
Resource and
workforce
planning
Focus on reacting
to short term
supply pressures
for today’s skills
and capabilities
Basic workforce
analytics to meet
local need
Workforce planning is
integrated into business
planning and performance
management
Deep understanding of future
capability requirements in line
with business scenario planning
Performance
management
and reward
Focus is heavily
on base pay
Established
performance
management cycle
Explicit link between overall
remuneration, performance
measures and strategy
execution
Performance culture exists with
differentiated rewards for all
levels and clear link between
strategy, performance and
reward
Learning and
development
Ad hoc skills and
class room based
training
Blend of learning
and development
approaches exists
Learning Academy provides
a ‘one stop shop’ for
employees to access
leadership, technical and
behavioural development
Sophisticated learning
organisation with segmented,
blended learning spanning
languages, cultures, styles,
geographies and generations
24% 50% 18% 8%
27% 47% 22% 4%
24% 39% 33% 3%
28% 55% 13% 4%
Source: HR Industry analysis, UTC and HRA, 2019
Spot your business maturity in people practices

Kazakhstan practice: HR industry analysis (2)
Basic Progressing Advanced Best practice
Talent
management
No formal succession
planning other than at
board level
Some level of local
succession planning, high
potential identification and
development
Clearly articulated career
paths and ladders
supported by defined
competencies
Integrated global succession plan
for all key leadership, technical
and professional roles
Employee
relations,
communications
and engagement
Largely reactive
industrial relations
practices with a focus on
grievance and
disciplinary proceedings
and trade union activity
if required
Specialist capability in
employee relations
Employee relations is
understood in global
context with clarity on
comparative practices
across geographies
Sophisticated practices exist for
managing a culturally diverse and
mobile workforce including global
agreements on workers’ rights
and focus on corporate and social
responsibility
Managing change
Ad hoc, reactive
approach to change
management
Developing change
management and
organisational development
capability
Strong organisational
development capability
with a range human capital
implications incorporated
into business scenario
planning
Sophisticated organisational
development / effectiveness
capability exists to drive business
performance by aligning strategy,
business models, operating
models, organisational structure,
culture, employee engagement
Managing
employee data
Employee data managed
locally
Accurate employee data
managed via local system or
application
Basic employee data
integrated globally,
supported by standard data
dictionary
Global, cloud based system
providing ‘one source of truth’ for
employee data with full use of
workflow capabilities,
incorporating performance
management, reward, talent
42% 47% 8% 2%
28% 48% 23% 2%
36% 51% 12% 1%
49% 37% 11% 3%
Source: HR Industry analysis, UTC and HRA, 2019
Spot your business maturity in people practices

HR practices in Kazakhstan (N 140)
1
2
3
4
Best Practice Market 75th Market 50th
1 2 3 4 5 6 7 8
Recruitment
and retention
Resource and
workforce
planning
Performance
management and
reward
Learning and
development
Talent
management
Employee relations,
communications and
engagement
Managing
change
Managing
employee data
Best practice
Advanced
Progressing
Basic
Industry analysis by UTC and HRA, 2019
What practices do I need to succeed my business?

HR strategy describes
how our business creates
value for clients through
people

What should your
HR strategy include?

The Harvard Strategic Map
Stakeholders
Interests:
Shareholders
Management
Employees
Government
Situational
Factors
Work force
characteristics
Business Strategy
Management
philosophy
Labour Market
Unions
HRM Policy
Choices
Employee influence
HR flow - turnover
Reward systems
Work systems
Costs
Efficiency
HRM Outcomes
Commitment
Competence
Congruence
Cost Effectiveness
Long Term
Consequences
Individual well
being
Organisational
effectiveness
Societal
well - being

HR for Leaders|3
 Organizational Structure
 Job doability
 Job profiling
 Job measurement
 Work levels

What challenges do you face about
organizational structure and roles?

Business drives organizational performance
Mission & Vision
Operational model &
Organizational
structure
Work levels and Jobs
To what extent your structure / roles reflect the model
of how you make money?

Core organizational processes include
Create
Demand
Demand /
Supply
Planning
Meet
Demand
Unmet
Customer
Needs
Satisfied
Customer
Needs
Marketing Logistics Distribution
Are all blocks presented / aligned in your organization?

Principles of organizational design
Does your structure serve these 4 elements?

Main structure types
Functional Divisional
Process Matrix

Criteria of effective organizational structure
№ Effectiveness criteria
1 Supports strategic intent of the business
2 Fits target operational model
3 Fits desired organizational culture
4 Supports business performance
5 Implementation potential
6 Fits leadership style

Job doability principle
 Poor performance
 Bad decisions
 Stress
 Depression
 Diminished initiative
 Failure / termination
 Boredom
 De-motivation
 Internal competition
 Cynicism
 Dead initiative
 Departures
Skills and competencies
Accountability
HayGroup

Key role features
Mission
 To serve an interface
between main
stakeholders and key
customers to deliver
on client promise to
the highest
standards and
stakeholders’
expectations
Accountabilities
 Is accountable for
development of
annual sales budget
with quarterly
control of targets
achievement to make
sure all segments
leaders have clear
and measurable
performance criteria
according to strategic
plan
Performance
indicators
 Sales targets
 Gross margin
 NPS
 Team engagement
Can you decode job’s mission into accountabilities and
performance indicators to double check people fit?

Job performance: from challenges to success behaviors
Behaviors
 Impact and Influence
 Understanding others
 Earning Trust
 Analytical Thinking
 Agility
 Self-management
 Impact and Influence
 Understanding others
 Earning Trust
 Analytical Thinking
 Understanding Business
Challenges
 Sales processes confidence
 Sales objections
 Feedback asking and receiving
 Change resistance
 Sales processes confidence
 Sales objections
 Making trustful relationships
 Communication at different levels

Formulate your role accountabilities
Verb
What is done
 Prepare, monitor
and control
Object
To what / whom
 The annual
departmental
budget
Result
With what
outcome
 To ensure
expenditure is in
line with the
business plan
Approach
How
 Analytical
thinking
 Information
seeking
 Cooperating with
others
Why job clarity is critical to communicate?

Job measurement criteria
Measures Factors
Expertise level
 Practical/Technical Knowledge
 Planning and Integration
 Communicating and Influencing Skills
Problem solving
 Complexity of thinking
 Nature of challenge
Accountability
 Freedom of action
 Nature of Impact
 Impact measure
Why do we need clear criteria to rank the jobs?

Leveling jobs in organization
Professional group Levels
Operational level
 Workers
 Administrative staff
Professional level
 Specialists
 Experts
Middle managers
 First line managers
 Functional leads
Top managers
 Directors
 VPs
 CEOs
What changes when progressing from one role to another?

How professional roles change success factors
Korn Ferry, 2015

HR for Leaders|4
 Performance management

Performance
Management
is a core business process for
executing
organizational strategy by
aligning
individual/team objectives and
behaviors with organizational strategy.

The higher the level of job complexity, the higher is the
performance potential
Sales
48-120%*
High complexity jobs
48%*
Medium complexity jobs
32%*
Low comlexity jobs
19%*
Why executives care about performance management?

Performance management challenges are rooted in …
Why?

What is performance?
What
(targets)
How
(competencies)
Results
What should your performance management system
then include and measure?

Culture drives business performance
Balanced
scorecard
(financial, clients,
processes, people)
Organization
performance
Function KPIs
Function
performance
Team KPIs
Team
performance
Job KPIs
Individual
performance
«What» «How»
Objectives Competencies
Strategy
Culture

Performance management = balanced score card
Why should business balance these indicators?
Norton & Kaplan

Performance management basis
MBO | SMART
70%
19%
Achievement
motivation
(«doing better»)
Goal setting
(moderate risk,
personal
engagement,
reinforcement)
Self-directed
behavior change
(conditions of
change, self-interest)
General systems
theory
(input-process-
output)

Are the objectives achievable?
# Objectives
1  Increase market share
2  Meet budget
3  Monthly analysis of market trends
4  Liaise with Commercial and Shipping
5
 Secure 5 new customers for new product X achieving 5% margin by
August 2009
pair work

Only smart objectives work
Measurable
Attainable
A
T
S Specific
M Measurable
R Relevant
Time-Bound
Attainable

«Smartened» objectives
# Objectives
1  Increase Market share of product X by 5% by end of 2nd quarter
2  Reduce previous years expense budget by 5% by 3rd quarter
3
 Produce a market analysis and set of recommendations by last day of each
month, beginning with 30 June 2009
4
 Make minimum of 3 progress calls per month to ensure right allocation of
products to meet monthly sales budget
5
 Secure 5 new customers for new product X achieving 5% margin by
August 2009

Performance drivers: from challenges to strategies
Your challenges
 Motivation of team
What behaviors will help you drive performance of your team?

Engagement
Support
 Confidence in
Communication
 Earning Trust
Approach
 Understanding Business
 Information Exploration
Energy and Emotions
 Agility
 Proactiveness
 Self-management
Performance planning: success behaviors
Where is your strength? What is a challenge for you?

Performance drivers: from challenges to strategies
Your challenges
 Motivation of team
Your behavioral strategies
What behaviors will help you drive performance of your team?

Performance management systems describe:
Planning
Job responsibilities
Performance
expectations
Goals setting
Management
Feedback
Coaching for
development
Positive / negative
reinforcement
Appraisal
Evaluation
Reflection
Aspirations

Performance
management activities
Correlation with
business success
Ongoing goal review and
feedback
0.64
Developmental plans for next
period
0.60
Goal setting for upcoming
time frame
0.57
Review of relevant
accomplishments
0.54
(Stalinski and Downey, 2012)
A study done by the Institute for Corporate
Productivity reported that these performance
management activities had a moderate to high
correlation with business success. When there is an
increase in the use of these initiatives, there is a
moderate to high increase in business success.
Performance management drivers

High
Medium
Low Medium High
Performance
Trust
Business performance: what performers do you prefer?

Stakeholders in performance management and their expectations
Senior leaders
Effective
implementation of the
strategy
Transparency of results
Everyone committed to
core values
Clear relationship
between results and
reward
Managers
To realise annual and
mid-term plans
The right people in the
right place doing the
right things
To make optimal use of
existing talent
To manage employees
and steer on
performance
To reward excellent
performance and
improve poor
performance
Employees
Clarity regarding
expectations
 To have influence on the
set objectives
 To have insight into
their contribution to the
organizational success
 To have freedom to
determine the way they
achieve their objectives
 To develop themselves
into a direction that
appeals to them
 To be acknowledged
and rewarded for
accomplished results

Common challenges of performance management systems
Seen as an event
vs. an ongoing
process
Poor objectives /
measures
Manager
discomfort with
coaching & feedback
Inconsistent
application between
areas
Forms that are
novels
Lack of integration
Inflationary ratings
and lack of
differentiation
No discussion,
then end of year
surprises!
Purely HR driven.
Viewed as a
necessary-HR-evil
Seen as a process
only used to fire
people

HR for Leaders|5
 Performance management
 Reward management

Where is the link?
Performance
management
Reward
management

What is reward?
Reward is everything an employee sees of
value in the employment relationship.

What is more important?
Financial
reward
Emotional
reward

Performance management serves as a reward element
Planning
Job responsibilities
Performance
expectations
Goals setting
Management
Feedback
Coaching for
development
Positive / negative
reinforcement
Appraisal
Evaluation
Reflection
Aspirations

HR for Leaders|6
 Talent Management
 Success Factors
 Competency Interview

What is Talent?
‘the sum of a person’s abilities... his or her intrinsic
gifts, skills, knowledge, experience, intelligence,
judgement, attitude, character and drive. It also
includes his or her ability to learn and grow.
Michaels et al 2001

What is Talent Management?
Talent management is the process of ensuring that the organization
has the talented people it needs to attain its business goals.

At the same time… Recruitment is like…

Job-Person Match: the deeper, the clearer the fit
Social Role
Self-Image
Trait
Motive
Skill
Knowledge
Necessary for
top performance
but not sufficient
Technical
Competencies
Characteristics
that lead to
longer-term
success
Behavioral
Competencies
HayGroup

Psychometrics measurement: how to interpret

Engagement
Support
 Confidence in
Communication
 Earning Trust
Approach
 Understanding Business
 Information Exploration
Energy and Emotions
 Agility
 Pro-activeness
 Self-management
What drives leadership performance?

Interview technique: STAR
Situation &
Task
 What was the situation or task?
 What was your responsibility?
 Who else was involved?
Action
 What did you specifically do/say?
 What problems were there?
 How did you handle the problems?
Results
 What were the results?
 What impact did it have?
 How did you measure success?
 Interview your partner and drill-down his / her responses using “STAR” model
 Ask and answer in the past tense
 Use «I» when responding
Tell your partner about a time when your logical argument was
not enough to persuade a key stakeholder (in STAR format)

Performance drivers: Impact through influence
What level fits your story?
 Influences
others based on
data or logic
 Uses rational,
well thought
through
arguments
 Uses expert
testimony to
influence others
Uses direct
influence
 Considers what
is important to
the stakeholder
audience and
tailors the
message and the
language
accordingly
 Tests ideas
privately with
individual
audience
members before
a formal
presentation to
the group
Adapts
approach
 Plan-fully uses
an influential
third party to
accomplish a
particular result
 Times the
release of
information in
order to
maximize
impact
Uses indirect
influence
 Uses
memorable or
impactful
stories or
analogies to
influence an
audience
 Personally takes
a symbolic
action to
reinforce the
message
 Does something
dramatic or
unusual to
create a specific
effect
Engages
people’s
emotions
 Brings a
coalition of
people together
to support an
idea, project or
change
 Builds behind-
the-scenes
support for a
specific agenda
 Develops
networks and
builds
relationships for
future influence
Builds
coalitions
BEHAVIORS
DEFINITION Engages with others, getting buy-in to deliver results and skilfully influencing to build support.
Where should you be to maximize your performance?

Leadership | 7
 Models
 Styles
 Horizons

Effective leadership: the more styles, the more
engaged is the team
HayGroup

a. Affiliative, Visionary, Coaching
b. Visionary, Pacesetting, Participative
c. Directive, Pacesetting, Affiliative
d. None of the above
Situation 1
An employee is very upset because he was passed over for a
promotion. He has always been a solid performer and a hard
worker. He is frustrated because he wants to advance and feels
he has been overlooked.

a. Affiliative, Coaching
b. Visionary, Participative
c. Affiliative, Pacesetting
d. Directive, Pacesetting
Situation 1
One of your employees is on the verge of “burnout.” She feels
overwhelmed with the volume of work and is having trouble
keeping her head above water. Timelines are tight and the work
for this project needs to get done on time.

How is that connected with leadership?

What is your Everest?
https://www.youtube.com/watch?v=5slSEJeRbmc

If yes, what did you do to …?
Did you do your best to …?
Peer coaching
Marshall Goldsmith

Culture | 8
 Business and culture
 Role of leaders
 Team culture

What is culture?
«Every time the leaders open their mouth,
they create a culture»

Howwe approach our
work at the organizational
level is called
culture

How is culture connected
with business performance?

2 variables contribute to performance
What How Business
Performance
«What» «How»
Objectives / KPIs Competencies
Strategy Culture
Performance
Individual level
Organizational level

! Whenever we open
our mouth we create
culture

Culture drives business performance
Balanced
scorecard
(financial, clients,
processes, people)
Organization
performance
Function KPIs
Function
performance
Team KPIs?
Team
performance
Job KPIs
Individual
performance
«What» «How»
Objectives Competencies
Strategy
Culture
What are team’s usual KPIs?

What are the ingredients of
great team?

«Group by interests»
«Team of stars»
«Star team»
3 levels of
top team
development

Where is my team? Self-assessment exercise
Behaviors 1 2 3 4 5 6 7 8 9 10
1 Team members trust each other
2 Team members tell the truth
3 Team members respect and care about each other
4 Team members understand their purpose
5 Team members keep commitments
6 Team members listen to understand
7
Team members act on strengths of others and eagerly
compensate their weaknesses
 Calculate the average score, be honest, most teams are 5-6.
 Where are you? Why? Where do you need to be?

What do I do to grow a great team?

Engagement | 9
 Business and culture
 Team culture
 Engagement and Enablement

What do I usually do to grow
a great team?

Levels of people engagement
FranklinCovey

What is the value of engagement?
Engagement
Enablement
Discretionary
efforts

Engagement results in extra mile of our team!
What is extra mile in your team / organization?

Progressiveemployeesurveyresearch
Morale
Links identified between worker
morale and productivity
Are our people satisfied?
Satisfaction Pride and loyalty
Commitment Commitment and
discretionary effort
Engagement
1920s―30s 1940s―60s 1970s―80s 90s+
links Engagement
with Enablement;
identifies impact on
performance and
solutions to get the
full potential of
people
Employee
Effectiveness
2007
The evolution of engagement frameworks
?
2019
HayGroup

1. I know what is expected of me at work.
2. I have the materials and equipment I need to do my work right.
3. At work, I have the opportunity to do what I do best every day.
4. In the last seven days, I have received recognition or praise for doing good work.
5. My supervisor, or someone at work, seems to care about me as a person.
6. There is someone at work who encourages my development.
7. At work, my opinions seem to count
8. The mission or purpose of my company makes me feel my job is important.
9. My associates or fellow employees are committed to doing quality work.
10. I have a best friend at work.
11. In the last six months, someone at work has talked to me about my progress.
12. This last year, I have had opportunities at work to learn and grow.
What is my level of engagement?
For how many factors I can say «absolutely agree»?
 Absolutely disagree
 Disagree
 Neutral
 Agree
 Absolutely agree

Why to use engagement survey?
Whatbusiness needs to know to be
effective

Drivers of effectiveness
HayGroup

Leader’s recognition creates magic

Online HR MBA Workbook for Leaders

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