EFQM "3e People are rewarded, recognised and cared for" with aspects of Motivation and Reward System (monetary, non-monetary, team, individual)

1. 3e People are rewarded,
http://www.flickr.com/photos/loop_oh/3781496443/
recognised and cared for

2. SUMMARY OF THE LASTSUMMARY OF THE LAST
LECTURES – WHAT DID
YOU LEARN?YOU LEARN?
International Human Resources Management,
Dr. Jörg Klukas

3. What we have learnt.
• EFQM Model for HR-
Departments
Sub-Criteria 3c
• Target Appraisal Interviews,
• Sub-Criteria 3a
• HR Planning
• HR Marketing, Recruiting,
Integration
Management by Objectives
• Empowerment
• Sub-Criteria 3d
• I te al Co icatioIntegration
• Succession Planning
• Employee Survey
• Sub-Criteria 3b
• Internal Communication
• Feedback, 360°
Sub Criteria 3b
• Strategic Competency
Management
• Blended Learning
S tSystem
• Annual Employee
Feedback Talks
International Human Resources Management,
Dr. Jörg Klukas

4. The EFQM excellence modelQ
Leadership
People
Strateg Processes
People
Results
Customer
Key
Performance
3 P lLeadership Strategy
Partnership
& Resources
Processes
Results
Society
Results
Performance
Results
3. People
a. People plans support the organization’s strategy
b. People’s knowledge and capabilities are developed
c People are aligned involved and empoweredc. People are aligned, involved and empowered
d. People communicate effectively throughout the organization
e. People are rewarded, recognised and cared for
International Human Resources Management, Dr. Jörg
Klukas 4

5. 3E PEOPLE ARE3E PEOPLE ARE
REWARDED, RECOGNISED
AND CARED FORAND CARED FOR
International Human Resources Management,
Dr. Jörg Klukas 5

6. The EFQM excellence model – PeopleQ p
3 P l d d i d d d f
In practice, excellent organizations
Ali ti b fit d l t d d d
3e People are rewarded, recognised and cared for
APPROACHES
E ( )• Align remuneration, benefits, redeployment, redundancy and
other terms of employment with strategy and policies and, to
promote and sustain the involvement and empowerment of their people.
• Adopt approaches that ensure a responsible work/life balance for their
l
Work/life balance
Empowerment(3c)
people.
• Ensure and embrace the diversity of their people.
• Ensure a safe and healthy working environment for their people.
Motivation
• Encourage their people to participate in activities that contribute to
wider society.
• Promote a culture of mutual support, recognition and care between
individuals and between teams Total Rewards
Intercultural
Management(L)
International Human Resources Management, Dr. Jörg
Klukas 6
individuals and between teams. Total Rewards

7. MOTIVATIONMOTIVATION
International Human Resources Management,
Dr. Jörg Klukas 7

8. Sucess Factors –
Satisfaction & Motivation
The Success of Company
Employee’s emotional connection Employee’s motivation
Overall image Overall satisfaction Intrinsic extrinsic
Train for skills Hire for attitudes
International Human Resources Management,
Dr. Jörg Klukas 8Source: forum! Modell zum Einfluss der Motivation auf den
Unternehmenserfolg

9. Intrinsic&Extrinsic Motivation
Motivation of Employee
Extrinsic motivation Intrinsic motivation
Supervisor Satisfaction of the life
Communication Ability of enthusiasm
Team
Perspective
Discipline
International Human Resources Management,
Dr. Jörg Klukas
Identification
9

10. German Benchmark for
Motivation/Statisfaction
Very Satisfied and motivated
overaverage
Very Satisfied and motivated
Average satisfied and motivated
index
Average Satisfied but unmotivated
otivationi
Unsatisfied and unmotivated
Very unsatisfied and unmotivated
rageM
Very unsatisfied and unmotivated
Belowave
Source: Exba Mitarbeiter 2007
Below average Overall satisfaction over average
International Human Resources Management,
Dr. Jörg Klukas 10

11. Motivated Employees Connect with
Their Customer
Employee
motivation
index 86 points
nSalesReturnon
Employee
i i
R
motivation
index 46 points
International Human Resources Management,
Dr. Jörg Klukas
Source:Kundenstudie
Handelsfilialen;Mitarbeitemotivation
sindex auf einer Skale vom 0-keine
Motivation bis 100- maximale
Motivation
Emotional customers connection
11

12. How can employees contribute
optimally to the successp y
The Success of Company
Emotional customer retention
Customer-oriented
Employees’ motivation
Extrinsic motivation Intrinsic motivation
International Human Resources Management,
Dr. Jörg Klukas
Train for skills Hire for attitudes
Source: forum! Modell zum Einfluss der Motivation auf den
Unternehmenserfolg
12

13. Motivation lead to Customer-oriented
To what extent do you agree the following statements of your activities?
I feel that personal responsibility
to the customer’s satisfaction
I understand that the Salary come
at last from customer
It is easy for me to put myself
in the position of customer
I feel comfortable contact with customer
High motivated
International Human Resources Management,
Dr. Jörg Klukas
Source:Kundenstudie
Handelsfilialen;Mitarbeitemotivationsindex auf einer Skale
vom 0-keine Motivation bis 100- maximale Motivation
High motivated
Low motivated
13

14. Herzberg’s Two-Factor Theoryg y
Source: flatworldknowledge 2010
International Human Resources Management,
Dr. Jörg Klukas 14

15. Expectancy Theory and Equity Theory -
Employeesp y
Expectancy Theory –
the process people use to
Equity Theory –
individual’s perception ofthe process people use to
evaluate the likelihood
their effort will yield the
d i d t d h
individual s perception of
fair and equitable
treatment.
desired outcome and how
much they want the
outcome.
International Human Resources Management,
Dr. Jörg Klukas 15

16. Goal-Setting Theory - Leadersg y
• Goal: target, objective, or
result that someone triesresult that someone tries
to accomplish.
• Goal-setting theory -g y
people will be motivated
to the extent to which
they accept specificthey accept specific,
challenging goals and
receive feedback that
i di t th iindicates their progress
toward goal achievement.
International Human Resources Management,
Dr. Jörg Klukas 16

17. Motivation as Business Driver
Market / Customer (outisde)
Profitability
Growth
C t
New
Products &
Innovation
Organization (inside)
Q ti
Service
Quality
Customer
Satisfaction
Loyalty
Leadership
Strategy
Internal
Processes
Questions
of
employee
survey
Attitude of
employees
Behavior
of employees
Customer
Relation
Career
opportunity
Growth
driver employees
Performance/
Feedback
Teamwork
Re at o
Empowerment
direct
leadership
Culture
p
International Human
Resources Management, Dr.
Jörg Klukas 17

18. Influences of Motivation
Increase/growth
F db k
Clear
Expectation,
Responsi-
bilities Values
Commitment
learn
Feedback
Consequences
Requirements
of Motivation
Targets and
Tasks
Confidence
encourage
Commitment
Engagement
TrustStrategy
f
Performance
Tech-orga.
work
environment
Skills
Recognition,
Promotion
Material
Conse-
quences
Performance
(Results)
See and
understand
results
fair?
Satisfaction
with Results
and System
Skills,
Knowledge
improve
learn
International Human Resources Management,
Dr. Jörg Klukas 18

19. Emotions drive Motivation
• you cannot motivate somebody
• motivation can only be done by oneelf• motivation can only be done by oneelf
• but, you can cause emotions and on that basis
motivations processes are initializedp
• employee motivates himself on the basis of
id d i b h l dprovided emotions by the leader
International Human Resources Management,
Dr. Jörg Klukas 19

20. Leading by Emotionsg y
• understand inter-relational emotions processes as
drivers for internal motivations processesdrivers for internal motivations processes
• Leading by Command&Control
• Leading by Objectives
L di b Vi i
emotional
• Leading by Vision
level
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Dr. Jörg Klukas 20

21. Remember:
Communication drives Emotions
Avoid Negative Emotions Achieve Positive EmotionsAvoid Negative Emotions Achieve Positive Emotions
Power
C t l
Lack of power
Los of control
Control
Influence
Freedom
Self-determination
Contempt
Recognition
Appreciation
Depreciation
Ignorance
Appreciation
Status
Image
International Human Resources Management,
Dr. Jörg Klukas 21

22. REWARDS MANAGEMENTREWARDS MANAGEMENT
International Human Resources Management,
Dr. Jörg Klukas 22

23. Shift in Jobs & Reward Systemsy
• 1960s & ‘70s
• manual workersmanual workers,
• piece-rates/wage drift,
• measured day work,
• incomes policies
• 1980 & ‘90s
• service/knowledge workers,service/knowledge workers,
• Performance Related Pay,
• shares
2000• 2000s
• Reward management,
• Performance Related Pay,y
• “Total Reward”
23
International Human Resources Management,
Dr. Jörg Klukas

24. Objectives of Reward Managementj g
• Support the organisation’s strategy
• Recruit & retain• Recruit & retain
• Motivate employees
• Internal & external equityInternal & external equity
• Strengthen psychological contract
• Financially sustainable
• Comply with legislation
• Efficiently administered
24
International Human Resources Management,
Dr. Jörg Klukas

25. Basic Types of Reward
Source: http://www.wishfulthinking.co.uk/2008/12/09/balance/
25
International Human Resources Management,
Dr. Jörg Klukas

26. Reward from HR Excellence Prospectp
BestPersAward
• how many of your employees have target agreements with financial
consequencesconsequences
• The results of the performance evaluation are used what for: basic
salary, variable compensation
• Do you have a Cafeteria-System (Employees choose salaryDo you have a Cafeteria System (Employees choose salary
components)
• Which components does your reward system have? retirement
provisions, performance fee, company car, cell phone, employee
discount, accident insurance
• …
26
International Human Resources Management,
Dr. Jörg Klukas

27. Reward from HR Excellence Prospectp
People Capability Maturity Model (PCMM)
Source: Carnegie Mellon University
2010
27
International Human Resources Management,
Dr. Jörg Klukas

28. Reward from HR Excellence Prospectp
People Capability Maturity Model (PCMM)
28
International Human Resources Management,
Dr. Jörg Klukas

29. TOTAL REWARDTOTAL REWARD
International Human Resources Management,
Dr. Jörg Klukas 29

30. Total Reward - Results
• Differentiation from competitors regarding reward system
• Support of culture of excellence and team building, which are
fundamental for the business
• Long term connection of important competences through bonus
systems
• Increasing company performance
30
International Human Resources Management,
Dr. Jörg Klukas

31. Total Reward – Stakeholders
Integrating important Stakeholders:
• support of commitment to performance and engagement of
internal and external employees as stakeholders
• support of the management as leading authority
• the organization regarding economic efficiency
• positioning on the job market as the Employer of Choice
• negotiation with labor unions as a representative of the
employee
• compliance with regulations and laws
organization job market
internal/external employee
legislator/lawmaker labor union
leadership
31
International Human Resources Management,
Dr. Jörg Klukas

32. Total Reward – Processes
Based on Processes:
• Process: Strategy and Planning
• focusing of compensation tools on Human Capital Market
• Analyzing market needs and expectations of employeers, applicants
• Strategy as Attractive Employer and to bind people to your organizationSt ategy as tt act ve p oye a d to b d peop e to you o ga at o
• Process: Operational leadership
• Use of Reward Approach for commitment to performance and engagement
of employees
• Day to Day Leadership uses tools of rewards• Day to Day Leadership uses tools of rewards
• Process: Ensure value and learning
• Use learning as a chance of non-financial compensation
• Set up structured feedback possibilities for individuals and teams after
projects, services, or work-day
• Process: Human Resources Management
• managing of reward tools and their processes
• Monitor effectiveness of the variaous toolsMonitor effectiveness of the variaous tools
• Manage and moderate fairness throughout the organization
32
International Human Resources Management,
Dr. Jörg Klukas

33. Total Reward – Elements
Indi idual monetarTeam oriented
monetary
Individual monetary
performance reward
are individually set up
Team-oriented
monetary reward are
valid for entire groups
tariff non-tarifftariff non-tariff
individualteam individualteam
Team-oriented and
individual non-
t i ti
Company-wide Social-related Person-related
Incentives
monetary incentives
non-monetary 33International Human Resources Management,
Dr. Jörg Klukas

34. Total Reward – Example
monetary&inidividualy
Individual monetary performance reward are individually set up
C ti f
Increases
Premiums for extraordinary achieve-
ments beyond wage
Compensation for
“Available for Service”, “Night shifts”,
“Weekend work” (Rufbereitschaft)
Annual Salary
Check (Gehalts-
überprüfungsprozess)
Variable Salary acc. to reached targets
(Variabler Anteil entsprechend Zielerreichung)
Increases
acc. to risk responsibility
ments beyond wage
agreements
M k i d b
On demand
salary
up/downgrade
by peer
(Variabler Anteil entsprechend Zielerreichung)
Market-oriented base pay acc. to wage agreement
(Grundgehalt nach Tarif)
y p
assessment
(Höher/ Herab-
gruppierung)
tariff non-tariff
34International Human Resources Management,
Dr. Jörg Klukas

35. Total Reward – Example
monetary&teamy
Team-oriented monetary performance reward are valid for
entire groups
 Business car and
business telephone for private use
 Top Team of the Month for good performance in projects and services
 Deutsche Telekom discount for devices and contracts
 Business travel compensation beyond legal regulations
 Continued pay for illness beyond legal regulations
 Insurance for accidents for invalidity and death
 Deferred Compensation as conversion of cash salary in pension with high
interests
 Stock Options (Jubiläumsaktien)
 Pension and Fond System (Altersvorsorge)
tariff non-tariff
35International Human Resources Management,
Dr. Jörg Klukas

36. Total Reward – Example
non-monetaryy
Team-oriented and individual non-monetary performance
rewards
 Transparent career paths
for all positions at MMS
 Flexible working time
based on trust
 Lived team-spirit as
company culture
 Management by objectives
with team targets (Führen
 Fastidious tasks
 Transparent individual
career path
 Further education by
 Individual workplace set up
by choosing computer,
laptop, mobile, plants,
paintings, etc.
(A b i l l )
g (
durch Ziele)
 Open feedback culture by
employee survey, project
feedbacks, annual employee
lk j i
y
training plan acc. to
Blended Learning System
and individual education
contracts (e.g. for diploma,
MBA PhD) C hi(Arbeitsplatzgestaltung)
 Special leaves
(Sonderurlaub)
 Coffee/tea kitchen, Work-
out room, massage service,
talk, project reviews
 Informal communication
through all hierarchy levels
by email, telephone, news
articles, workshops, etc.
MBA, PhD), Coaching
 Sabbatical, e.g. education
time out
 Flexible working hours by
part time contracts andout room, massage service,
vaccination, parking
spaces, bicycle room
articles, workshops, etc.
 Offsite meetings, works
outings, celebrations
part time contracts and
alternating telecommuting
 Individual feedback talks
as annual employee and
target agreement talks
Company-wide Social-related Person-related
Incentives 36International Human Resources Management,
Dr. Jörg Klukas

37. Total Reward - Measuring Success
(Controlling)( g)
• differentiation from competitors regarding compensation system
• Applicants per job
• fluctuation
• support of performance culture and team building, that are basics
in our business
• questions in the employee survey about team working
• Evaluation of team work through customer survey
• Number of TOP Team of the month
• long term engagement of important competences through appeal
systems
• Number of certificates
• increase of company performance
• value-added per person
• average target fulfillment
37
International Human Resources Management,
Dr. Jörg Klukas

38. Reward – Internal Communication
Example „ It does’t always have to be money“
• Excellent! Team of the month.
• Negotiated! Use the discounts of the
for devices and contracts.
Paid!
• Market oriented basic salary plus
variable compensation according to
p „ y y
for devices and contracts.
• Awesome! Expenses for business trips
beyond regulations
• Cured! Continued payment for illness
beyond regulations
variable compensation according to
reached targets plus compensation for on-
call duty plus bonus payments
• Tools: Annual salary check, Peer
Assessments
More money for me
More money for the team
team-oriented
financial
individual
financial
Going strong! Support team spirit
through joint activities
Di id d! L di th h l F
Promoted! Transparent career
options.
R l i h d! Kit h fit
Motivated! Fascinating and challenging
tasks
F l t d! I di id lDivided! Leading through goals: From
BSC to unit-BSC until individual
goals.
Spoken! Open communication
culture. Tools: Target conversations,
Meetings, company‘s day out
Replenished! Kitchens fitness room
massages
Worked! Flexible working time. Part
time and remote work!
Formulated! Individual career,
transparent path.
Educated! Further education options
(Blended Learning System) and
individual education contracts
(for promotion, MBA), Coaching.
company-wide
fi i l
social
fi i l
individual
fi i l
Meetings, company s day out
Celebrate in teamAdvantages for everyone
(for promotion, MBA), Coaching.
Agreed! Employee
feedback talks and
appraisal interviews
non financial non-financial non-financialCelebrate in teamAdvantages for everyone
International Human Resources Management,
Dr. Jörg Klukas 38

39. Contact me!
Dr. Jörg Klukas
• XING: https://www xing com/profile/Joerg KlukasXING: https://www.xing.com/profile/Joerg_Klukas
• Facebook: http://www.facebook.com/home.php?#!/joerg.klukas
• Slideshare: http://www.slideshare.net/pludoni
• Twitter: http://twitter com/pludoniTwitter: http://twitter.com/pludoni
• Email: joerg.klukas@pludoni.de
International Human Resources Management,
Dr. Jörg Klukas 39