World of Requirements – Conclusion World of Possibilities • To predict and influence the future both in outer and inner environment • To be able to react on both inner and outer happenings and accordingly change WHAT is being done and/or HOW it is being done • To be good at it ~ basically to make a profit • To do something meaningful PV215 - 2011 - 6 2 DYNAMICS STABILITY EFFECTIVITY USEFULNESS Lecture Introduction   Theory of Vitality conclusion ◦  Theory of constraints application ◦  Sustainable development   The world of possibilities ◦  Human resources ◦  Strategy of human resources development   aka Pyramid of Culture ◦  Developing of abilities and influencing of attitudes ◦  Assessment and remuneration PV215 - 2011 - 6 3Lecture Introduction The strategy of building a vital system represented by Pyramid of Vitality is intuitive and clear The tactic of building a vital system might be much more complicated • the straightforward headway from the bottom to the top usually does not work In fact, it is necessary to revisit already built levels that may seem complete • because the main constraint preventing system of being vital is usually moving up and down PV215 - 2011 - 6 4 D S E U D S E U D S E U ToV conclusion Constraint is anything that prevents system from achieving more of its goal Theory of Constraints (ToC) presumes that there is at least one constraint and at most few in any given system in respect of system performance ToC defines a process seeking for identification of the constraint and restructuring the rest of organization around it • identify the main constraint • decide of its exploitation • subordinate all processes within the system to that constraint • elevate the constraint • if focused constraint moved, start again by identification Do not let inertia become the constraint. PV215 - 2011 - 6 5 by E.M.Goldratt D S E U ToV conclusion Theory of Vitality describes the strategy of achieving vitality in companies! Theory of Constraints describes the tactic of achieving and sustaining vitality in companies! PV215 - 2011 - 6 6 Effectiveness? Usefulness? no no yes Usefulness! Effectiveness! yes Stability? Stability! yes Dynamics? no Dynamics! yes Consultation! no (C) J. Plamínek D S E U ToV conclusion PV215 - 2011 - 6 • primary focus on services Develop ment (qualitative) • primary focus on products Grow (quantitative) Stagnation D S E U 7 (C) J. Plamínek SSME is not coincidence! ToV conclusion World of Possibilities PV215 - 2011 - 6 9 ResourcesProcesses Services/ Products Subjects Needs Human Resources World of Possibilities PV215 - 2011 - 6 10 Person (human resources bearer) Qualities (the way we are) Attitudes (what we want, what we believe in) Abilities (what we know and can do) Human Resources Describes what their bearers are, comprising • character traits • temperament • preferences of personality type (e.g. MBTI type) They can be changed very slowly or not at all • they are tightly connected to the biophysiology of their bearer From the management perspective • they are not subject of development and change • they have to be recognized, accepted and respected PV215 - 2011 - 6 11Human Resources Describes what their bearers know and are able to do, comprising • knowledge (mention) • skills (use) By usage is this resource confirmed and strengthened! From the management perspective • lead people to develop their current abilities towards current or expected corporate needs • lead people to gain brand new abilities which are currently missing or are expected to be missing in the future • seek for new people which have currently missing abilities or abilities expected to be missing in the future Therefore, abilities as resources have to be subject of systematic planning! PV215 - 2011 - 6 12Human Resources Acute shortage of needed abilities Inappropriate distribution of abilities among employees • causing process inefficiency and negatively affects Effectivity Development of unnecessary abilities • wasting of potential to useless abilities PV215 - 2011 - 6 13Human Resources Describes what are the expectations, wishes, believes of their bearers They are significantly influenced by • company culture • motivation and remuneration system • intelligibility of the system of corporate ideas From the management perspective • to recognize negative attitudes, understand their causes and try to correct them • correction may be done at the system level or at individual level PV215 - 2011 - 6 14Human Resources see lecture 1, slide 29 PV215 - 2011 - 6 15 Able, but unwilling Able and willing Unable and unwilling Unable, but willing abilities attitudes positivenegative sufficientinsufficient (C) J. Plamínek Human Resources PV215 - 2011 - 6 16 Able, but unwilling Able and willing Unable and unwilling Unable, but willing abilities attitudes positivenegative sufficientinsufficient 1 2 3 4 (C) J. Plamínek Human Resources PV215 - 2011 - 6 17 Participative (share ideas) Delegative (turn over decisions) Authoritative (give instructions) Argumentative (explain decisions) abilities attitudes positivenegative sufficientinsufficient Deleg ative Participa tive Consultative Argumentative Authoritative see lecture 5, slide 18 Human Resources PV215 - 2011 - 6 18 Integration Synergetization Habilitation Motivation Orientation Definition Corporate ideas are defined People understand corporate ideas People support corporate ideas People possess requested abilities Good relationships Personal development (C) J. Plamínek Pyramid of Culture PV215 - 2011 - 6 19 Causes of Disloyalty Unknown relevant part of corporate system ideas or respective task definition Unknown meaning of corporate system ideas or respective tasks Absence of corporate ideas system or task definition Definition OrientationMotivation Int Syn Hab Mot Ori Def Able, but reluctant Able and willing Unable and reluctant Unable, but willing (C) J. Plamínek Pyramid of Culture PV215 - 2011 - 6 20 Causes of Inability Insufficient relational abilities Conflict personality or situations Insufficient individual abilities Habilitation SynergetizationIntegration Int Syn Hab Mot Ori Def Able, but reluctant Able and willing Unable and reluctant Unable, but willing (C) J. Plamínek Pyramid of Culture PV215 - 2011 - 6 21 Int Syn Hab Mot Ori Def Why? Task context (strategic orientation) Task submission Results evaluation and assessment relevant goals relevant ways role of worker task definition task evaluation how?how? when? what? what? when? failuressuccesses (C) J. Plamínek Pyramid of Culture PV215 - 2011 - 6 22 Assessment long-term assessment performance resources short-term assessment of performance irregular assessment of competencies Pyramid of Culture interview focused on quality of performed tasks in the last period once a month short-term feedback immediate influence to incentives archived for the purpose of long-term assessment PV215 - 2011 - 6 23 Assessme nt short-term assessment of performance irregular assessment of competencies long-term assessment resources performance Pyramid of Culture of Performance • analysis of the performance to find optimization regarding the corporate requirements and worker’s possibilities • utilization of pyramid of culture • long-term feedback of Resources • resources measurement • outlook to the future • career development (horizontal and vertical careers) • long-term feedforward PV215 - 2011 - 6 24 Assessme nt short-term assessment of performance irregular assessment of competencies long-term assessment resources performance Pyramid of Culture Applied when possibilities and requirements do not match each other • worker has gained new abilities for another task than he or she performs • worker repeatedly does not perform as expected Assessed worker is assigned to the trial task • trial task is supervised • supervisor recommends one of the following • admission of new competence • further resource development • change of requirements PV215 - 2011 - 6 25 Assessme nt short-term assessment of performance irregular assessment of competencies long-term assessment resources performance Pyramid of Culture PV215 - 2011 - 6 26 fixed pay: salary variable pay: incentives & commissions (C) J. Plamínek Pyramid of Culture   World of Requirements ◦  Theory of Vitality as a strategy for achieving vitality ◦  Theory of Constraints as a tactics for achieving vitality   World of Possibilities ◦  Human resources: qualities, abilities, attitudes ◦  Pyramid of culture ◦  Causes of disloyalty and inability ◦  Orientation ◦  Assessment ◦  Remuneration PV215 - 2011 - 6 27Lecture Summary