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Human Capital Management Strategy

Human Capital Management Strategy. Human Capital Management Strategy. Why focusing on Human Capital Management ?. Today We are the leading plant worldwide in terms of: Customer Returns (ppm) Just in Time Delivery (Size Achievement) Quality performance

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Human Capital Management Strategy

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  1. Human Capital Management Strategy

  2. Human Capital Management Strategy Why focusing on Human Capital Management ? • Today • We are the leading plant • worldwide in terms of: • Customer Returns (ppm) • Just in Time Delivery (Size Achievement) • Quality performance (scrap, uniformity) • Innovation (automation of processes) • Costs (Process Costs) • Future • In order to keep our • competetive advantage • we will Maximize our • Human Capital by: • Creating a True Team Atmosphere (« Winning Team ») creating & accepting change • Implementing a Self-driven Organization working towards one common goal Challenges • Increasing • ww competition: •  Cost Pressure • Increasing Customer • Demand Pressure in: •  Quality •  Complexity • Further automation • of plant is limited in • terms of feasibility, • costs

  3. Human Capital Management Strategy Building coorporation within « Winning Teams » • Worker • Basic Human needs: • Security • Respect & Trust • Involvement&Contribution Supervisor Basic Human needs: - Security - Respect & Trust - Involvement&Contribution (increasing level) Manager Basic Human needs: - Security - Respect & Trust - Involvement&Contribution (highest level) - Intellectual Challenge Broad Consen- sus • Workers work for different reasons than supervisors, technicians or managers. • Human Capaital Management increases the broad consensus of an organization by addressing the basic human needs of everyone

  4. Human Capital Management Strategy Building coorporation within « Winning Teams » Workers and Supervisors agree (broad consensus) that certain manufacturing procedures (what they want) will result in products with targeted levels of quality and cost (cause & effect), they will cooperate to follow those procedures. Results Oriented High Performance Organization Organization Consensus Broad Higher focus on results Automatic employee rather than processes, cooperation, with deep employees follow due to consensus on priorities, lack of alternatives self - managing Goal Fierce Based Standardized Organization Organization Keeping employees Company improvement No together by KPI, SOP ’ s based on threats, force, Consensus needed due to low consen - coercion sus on what they want No Broad Consensus Consensus Extent to which people agree on Cause & Effect Goal of plant Sarreguemines is to install a self managing High Performance Organization with deep consensus on priorities

  5. Human Capital Management Strategy High Performance Organization

  6. Human Capital Management Strategy SWOT Analysis (Outcome Workshop April) • Strengths  • Innovation / Risk Taking  small improvements identified in interface management • Opportunities  • Design of Activities • Employee Engagement • Employee Satisfaction  support for plant long-term plant goals not satisfying in 1st line management • Weaknesses  • Continuous Learning • Customer-Supplier Relationships • Flexibility  Top-down change manegement • Teamwork  blaming someone else for problems • Threats  • Leadership Orientation  Gap in 1st Line management, results oriented but not employee oriented • Organizational Structure  inefficient structure: too many managers doing same thing (union meetings, etc.)

  7. SWOT Analysis Action Plan Threats : Organizational Structure Business Unit Manager Union Representatives RSM Controlling Representative • Performance Management • Leadership • Cost Center Management • Union Management • Respect PM/ Efficiency e-call Group Leader Process Technician QA / PI Technician IE Technician • High/Low Performer • Leadership • 3-4-1 BU level • PIP / VSM Management • Process Optimization Direct Responsibility Shift Supervisor Functional Responsibility Business Units: Clear, efficient structure making whole Organization working towards one common goal: • BU Manager: 70 % strategic / 30% operational orientation • Group Leader: 30% strategic / 70% operational orientation • Whole BU Organization pulling towards one common goal • High/Low Performer • Leadership Worker

  8. SWOT Analysis Action Plan Threats : Leadership Orientation Executive Leader Persuading / Participating Style: Building enduring greatness, Strategic Management Orientation BU Manager Effective Leader Delegative Style: Catalyzes commitment, Stimulating higher performance standards Group Leader Leadership Employee Engagement Competent Manager Directive Style: Organizing people & resources effective towards plant goal Shift Supervisor Highly capable Individual Hrly Workforce Fully engaged: Makes productive contributions through talent, knowledge, skills and good working habits

  9. Action Plan Threats Leadership Orientation Leadership Improvement Plan Evaluate Leadership Abilities Develop Coaching Plan (Goals) Knowledge - Production Process - Business Process - Change Management - Leadership Personal Competence - Self Awareness - Self Management Social Competence - Social Awareness - Relationship Management • Knowledge • Master Business Process • Improve Production / • Business Process • Know-How • Personal Competence • Master Personal Compet.: Can I manage my emotions • and behavior to a positive • outcome ? • Social Competence • Master Social Competence: • Can I manage the interaction • I have with others constructive • and to a positive outcome ? Business Results i.e. Scrap / Volume / Costs Annual Performance Review (Big 6) • Employee / Peer • Feedback • 360° Outcome • BASICS ALIVE Outcome • Workshop Outcome • Bell Curve

  10. Action Plan Threats Leadership Orientation Leadership Improvement Plan • Evaluation of employees by supervisors according to Bell Curve • Beginning of year: Annual review goal agreement • End of year: Annual review goal attainment • Intermediate Beginnig – End of year: 15 min performance feedback 15 extra hrs per supervisor have been dedicated to Performance follow-up & Coaching of hrly workforce !

  11. SWOT Analysis Action Plan Weaknesses : Teamwork Inattention to RESULTS Avoidance of ACCOUNTABILITY Lack of COMMITMENT Fear of CONFLICT Absence of TRUST

  12. SWOT Analysis Action Plan Opportunities : Employee Satisfaction / Engagament Page Internet / KAIZEN / Televisions / Cultural Wellness

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