Most of the small, emerging (SME's) organization 's CEO or Business heads have a challenge on "PEOPLE MANAGEMENT." When the business head does not plan and execute the people management process effectively, the organization suffers from slipping deliveries, quality issues, increase in human resources cost, IR related problems and eventually all those failures affecting the business profitability and growth. The solutions call for a holistic approach to all aspects of the people management process, and this presentation attempts to give some perspectives from my experience with SME's in different regions. Recently I shared this presentation in one of the SME 's CEO forum and received a lot of interaction and appreciation. Hope this helps for business heads / CEO's

1. Holistic HR Processes
in
Small, Emerging (SME’s)organization

2. Typical Human Resources (HR) practices in small,
emerging organizations
Mostly, No dedicated resource for managing HR functions; Being managed
by Business Head / Operations Head
Focus is more on IR / Statutory compliance than people development
No structured Recruitment and compensation plan ;
No structured performance monitoring / review mechanism;
No differentiation between Performer and Non Performer
Ad hoc manpower planning process ; Struggling to attract & retain talent

3. Impact of existing HR practices.
Attrition rate high (in some cases >100%)
“People become unfit !” within 1-3 months of joining
Communication among people is getting complex
People management becomes a major problem for CEO.
Business impact -delivery slippage, cost overrun, repetitive customer’s
complaints

4. Need for a holistic approach on HR practices
All the people related challenges in the organization in due to
Stand alone or lack of HR practices leads to poor management of people
resources
Still thinking that people management through relationship as practiced
during early stages of the business will work during growth stage as well.
Increasing complexity due to increase in size of the Business

5. A holistic approach on HR practices
Holistic
Approach
Manpower planning process
Recruitment process
Performance Tracking & FacilitatingTraining & Development Process
Recognition &
Engagement process
Compensation process

6. Manpower planning process

7. What is Manpower Planning Process?
• Forecasting /Planning of Manpower w.r.t Growth Plan
• Both in No’s and Mix in each level
• Fulfillment plan ( Internal vs External)
• Dynamics on Organizational Structure and reporting relationships

8. Need for manpower planning process
Currently,
No forward projection of manpower requirements
Ad hoc recruitment as when required
Compromising on talent and trying to fit in
Not fitting in to culture/values
Impact : Growth delays or affects

9. Process of manpower planning
2019
2020
Volume increase
Plant expansion
Process addition
New lines of business

10. Planning across Functions / Levels….
Existing manpower Required man power
Function Operator Executives Managers Operator Executives Managers
Production
Quality
Purchase
Design
Marketing

11. Benefits of manpower planning process
To plan budget /understanding manpower cost in each category and ROI
To determine the job description / type of talent you look for..
To recruit and induct timely…

12. Recruitment process

13. *Will be discussed in
Compensation Process

14. Clarity on the position and job description…
Based on manpower planning , First write Job description for the position
Understand the purpose of the position
What competency you are looking for …
Defining Accountability and Responsibility on a daily / weekly basis
Defining reporting relationship both level up and down…

15. Sample Job description

16. Identifying search partners
Quality and Quantity of potential job seekers will vary based on search
partnership or channel you are approaching
Possible search partnership
Enquiring with known networks
Job portals
Recruitment consultant
Advertisement in paper / social media
Linkedin posting
Each option have advantages and drawbacks

17. Interview process
Some of the typical mistakes we do in interview process
Going by the resume and cross checking
Selecting the candidate based on past credentials ,not checking
fitment w.r.t our cultures
Screening based on compensation and level
Not effectively spending time to understand the candidate’s potential to
the job ( Checklist preferred)

18. Interview process
How to pick right candidate through interview process ?
Fitment to your culture
Check the past credentials by Insisting on “ How” part
Checking the responses by explaining your practical challenges
 Look for attitude
Example?

19. Induction Process
Recognize & Acknowledge the “Fear Factor” in any Transition
Friendly receptive and awareness will go a long way in engaging the people
 Duration of Induction depends on the business size and process
complexity.

20. Components of Induction:
Safety aspects
Product lines / Customer
Process / Challenges
Do’s & Don’t as employee
Familiarization of people and environment
 Facilities allocation

21. Performance Monitoring Process
Daily
management
Review
Forum
Performance
metrics
Comprising roles and responsibility,
daily / weekly activities
Individual / functional KPI’sDaily / weekly / monthly forums

22. Identification of competency gap
Sample:
The development effort can be
External training / online prg / certification.
Internal training.
On job training / Assignments.
Coaching / Mentoring by seniors.

23. Engagement Framework across LEVELS
Task force
Cross functional Teams
Small group activities
Suggestion scheme
 Create an environment to trigger
performance and teamwork

24. Compensation process

25. Planning for compensation framework
L1
L2
L1
L2
L3
L1
L2
L3
CEO
General manager
Managers / Heads
Supervisors / Executives
Operators

26. Planning for compensation framework
Each level represent ranges of compensation.
It need to be determined Based on
•Qualifications
•Relevant work experience
•Market competitive
Benefits:
Motivation aspects
Easy to fit new people w.r.t org structure
Scope for elevation-opportunity in the organization
Design of compensation plan
Must meet minimum wage act.
Fixed & variable pay w.r.to each level.
Variable pay in based on orgn performance + Individual performance
as agreed mutually

27. Performance based Compensation System

28. Typical existing Compensation Process
Ad hoc basis
More of subjective
No rationale behind the compensation hike
Value
Timeline

29. What is Performance based compensation system?
People will be monetarily compensated based on their individual &
organizational performance in a given period of time.
Compensation is directly related to set of key performances (KPI’s) as
set and agreed by both employee and employer
For example, KPI’s include OTD, Rejection value, System adherece,
Housekeeping and personal development
Compensation include Basic salary,Increments and Bonus

30. What is Performance based compensation system?
 Monthly compensation can be split into FIXED PAY and VARIABLE PAY.
Variable pay can be based on prorate basis of KPI performance of an
individual

31. Why performance based compensation system ?
To promote organization wide performance enhancement.
To identify and reward the performer
To differentiate the performer and non performer
To bring healthy, solution oriented, performance culture in the
organization
To retain and engage the talent in the organization.

32. Existing compensation system and the drawbacks
People are given equal (or) subjective increments every year
irrespective of organizational / individual performance
Promotes mediocre performance culture only.
No differentiation between performer and non performer

33. Pre requisite for performance based compensation system
Organization structure with band defined like
Operator – Supervisor - In charges – Senior Management -CEO
In each band, let us define the fixed and variable % of the
compensation.
Operator
Supervisor / Engineer
Asst.mgr / mgr
Senior mgr /
GM
Fixed Variable
70% 30%
80% 20%
90% 10%
95% 5%

34. Pre requisite for performance based compensation system
Redesignate / reposition people depending upon their existing
compensation pattern.
Define key performance metrics in each band and individual
Tracking and bringing transparency in KPI’s to all stakeholders every
month./ Quarter

35. How to start executing ?
For example,
GM (O) is given a set of KPI
Like,
OTD 100%
Mfg cost <20%
Abs rate 10% ; System Adherence
 Say his current CTC is 1 Lakh / month
His salary can be made as FIXED compensation as 70 k /month and
VARIABLE compensation as 30k / month.
He will be getting 70K as fixed, 30 k will be given on a pro rate basis
depending on the KPI performance on a monthly or quarterly basis

36. Regarding bonus
 @ end of the year based on the “Excess cash” generated from previous
year, CEO can allocate some percentage as bonus as organization
performance incentive . This can be distributed based on the BAND
Based on the level , % of compensation can be given

37. Performance Tracking & Facilitation

38. This includes….
 Setting Business and Functional Goals
 Organization wide deployment
 Organization Structure – Relationship
 Role clarity / Daily Management Process
 Review and facilitation mechanism

39. Organization structure
• Span of control
• Ideal structure
• Reporting relationship

40. Why this becomes critical now?
• Relationship & Informal management becomes complex when
growing big
• Communication complexity across level leads to confusion
• Accountability missing if no structure
• Review mechanism across different structure improves speed of
execution
• Performance demands clear metrics

41. Sample –orgn structure/ roles clarity framework
S.No Position Name Key accountability Metrics Daily / Weekly Management Reporting to Reportees
1GM xyx 1. Sales target. 1.5 Cr Daily 11'0 clk meeting ceo XYX
2. New customer development 2 new Customers Every Thu @ 15.30 Hrs KPI Meeting
Weekly delivery closure Thu@15.30 Hrs
01 Customer visit
Ever Friday follow-up new certification
2Plant Head xyx 100% Prod&Quality achievment Delivery actualisation Daily 11'0 clk meeting GM
All
Supervisors
OEE Improvements 80% OEE Every Thu @ 15.30 Hrs KPI Meeting
Man-power engagement % of Absent Weekly delivery closure Thu@15.30 Hrs
Kaizen 30 nos/Month Weekly meeting team Mon,Fri@14.00 Hrs
Visual Management 5S target 50% Daily audit and report @ 10'0 clk
Daily OEE review with team @ 09.30
Cost Analysis Rej&R/W cost, Inv cost Daily(Rej&R/w) @ 12.00 clk
Weekly(Inv cost) wed@ 15.00 hrs
daily Production report(Tgt vs Act) before 9.00 am
3Supervisors xyx 1. Hourly output Daily O/P(Act vs Tgt) collect data from each m/c Plant head All Operators
OEE Updation&improvements 80% OEE quality, maint co-ordianation
Visual Management 5S target 50% Daily OEE review with team

42. Daily / Routine Management

43. Why this is important
• Improving communication process
• Quick decisions
• Engagements

45. Organization wide
Performance Management system

46. Why ?
• Promote Performance oriented culture
• Differentiating performer and nonperformer
• Engage individual and team
• Natural Team Building process
• Functional efficiency Improvement
• Moving from functional to Organizational goal achievement

47. How ?
• Existing KPI extension into Functions & People specific

48. Net Profit : 10 %
Production delivery : 95 %
Operating cost : 5 % of sales value
Overall Effectiveness : 80 %
Power Expenses : Rs 20 / Kg
Production per hour : 1 T
Efficiency : 90 %
Rejection : 4 %

49. Training & Development Process

50. Complexity
of
people development

52. Concerns or Complaints
• They are not doing what I am expecting
• Not getting into analysis /solutions
• Fighting each other in meetings
• Not taking ownership
• They are looking for solutions from me ..(they are not thinking !! )

53. Lack of Winning Spirit

54. Your belief about people !!!

55. Winning Spirit..
Environment
Structured & Consistent Process

56. Your Past does not matter !!

57. Understand
your organization's
(Inner) Strength

58. Mapping of Talents
Potential
Performance
Low High
High

59. Defining “ Potential”
• Educational qualification
• Rich experience relevant to your organization
• Drive to Excellence
• Enterprise attitude
• Learning aptitude
• Looking & Grabbing opportunities

60. Mapping of Talents
AB
VJ VBG
GB,MS,VS,VIB, VCP,DCR,MCV SGB
Potential
Performance
Low High
High

61. Mapping of Talents
AB
VJ VBG
GB,MS,VS,VIB, VCP,DCR,MCV SGB
Potential
Performance
Low High
High

62. Mapping of Talent…
• This is dynamic
• Need experience and maturity to judge
• Not for penalizing people, it is for Development
• Helps to gauge the organization strength on short term & long term
w.r.t to your VISION
• Helps to develop the People & elevate the performance

63. Know your people competency

64. Each Position needs different level of competency
Technical
Managerial
Behavioral

65. Competency assessment
Position Incumbent Forging
process
Metallurgy
applications
Equipment
Maintenance
Problem
solving
People
management
Statitistcal
process
control
Computer
applications
Production
In charge
Mr.XYZ Yes No No No Yes No No
Action : Identify the competency requirement for each Position and assess
the GAP

66. Competency assessment
• This will help to understand the strength of the team
(Organizations as well !!!)
• Helps to plan training and development programmes for Individual
/ Functions / Organization as whole
• This is dynamic and continuous process
People development is a responsibility of the LEADER

67. Employee Engagement

68. Environment and Process
drives
Engagement

69. Suggested Environmental factors..
• Uniforms
• Neat Toilets
• Facility for eating food
• Water facilities
• Natural Ventilation / Lightings
• Housekeeping & Visuals representing positive thinking / team
working

70. Structured Engagement Process

71. Structured Engagement Process
• Top driven
• Long term focus (short term ??)
• Well defined (No hurry )
• Clear Communication / Policy
• Reward performer / punish non performer
• Become part of daily management

72. Engagement framework
Operators /
Inspectors /
Store keeper /
Maintenance crew /
Assistants / Clerks
In charges / Functional heads
Senior Managers / Functional heads

73. Case study examples..

74. How to initiate ?
• Create forum to communicate
• Genuinely demonstrate you are looking for Growth!
• Start small
• Define process and owners
• Launch it
• Stick on it , what may come !!

75. Thank You
For more Business and Personal Excellence related articles, case studies.
Pl visit www.winningmindssolutions.com
S.Ganesh Babu
ganesh@winningmindssolutions.com