The People Era

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THE

PEOPLE

ERA

Hisham Ibrahim Amer

Human Resource

MBA - Semester II

October 1

The People Era - Hisham I. Amer Page

InterMark is a Pan-Arab

Marketing and advertising

company, dedicated

only to serve the Pharmaceutical

Industry.

The Mission of InterMark

is to deliver unique Services

to the pharmaceutical and health

care industry that matches the everincreasing

market competition in such

important market segment.

Despite the fact that clients do appreciate

quality as the end result product or

service, to be provided the elements of producing

and maintaining such high quality products or

services is not appreciated.

Clients recognize the value of having high quality

products or services as a necessity to remain competitive

or maintain or grow market share. Clients

still do not appreciate the incremental cost accompanied

with higher quality product or services.

The challenge of improving the clients sense of the

cost of high quality product and services is not our

main challenge, since the increasing market competition

will help clients to understand and to accept the

extra cost of quality. The major challenge remains

in creating quality oriented operation with a mission

of delivering unmatched quality standards in

the market it competes in.

Our strategy to maintain and deliver quality services

is to provide a team done products or services that

are based on total integration of the company¡¦s most

important resources ¡§People¡¨.

Adding Value through Employee Management

Most CEOs are people persons. They are extroverted,

like conver- sation, and have the kind

of magnetism or p r e s - ence that

attracts others. B u t being a

human assets C E O

is more

speciOc than

just being

a people

person. It

means managing

poli

c i e s ,

p r o c e -

dures, p r o g r a m s ,

and systems

related to the

hiring, retention,

and development of

people at every level of

the organization.

Human assets CEOs do more

than just know the names of many

of their employees. They are actively

involved in career planning and mentoring,

meeting face-to-face with employees to discuss

values, decision-making, and performance.

The importance of Values

In large companies, employees come from a broad

range of backgrounds and are involved in a broad

range of activities. Yet, human assets CEOs believe

that as employees, this disparate group of people

must all adhere to the same distinct company values.

Those values are the unifying thread of what are

often complex employee-management systems.

Pepsi Co CEO ¡¥Wayne Calloway¡¦, for example,

emphasizes personal integrity. Integrity means

employees are open, honest, and willing to put themselves

on the line by telling the truth rather than

keeping hidden agendas.

Introduction

Managing Relationships

Managing people is more than managing individual

performance and values. It is also managing the relationships

among people.

United Biscuits CEO Eric Nicoli, for example, places

great emphasis on friendship among employees.

People who enjoy working with their colleagues will

be more motivated and committed to perform.

For Jan Timmer, CEO of Dutch electronics giant

Philips, the relationship between people is fundamental

to success of the Orm.

After walking around a factory for half an hour and

watching how management and workers react to

each other, Timmer says, ¡§I can walk out without

looking at the Ogures, and I can tell you if that factory

makes money or not¡¨.

How They Do It

As with strategic management CEOs, human assets

CEOs delegate day-to-day operations. This gibes

them the time to closely monitor and be involved in

the performance and careers of their employees.

The People Principle

Attempts to improve productivity in the 170s and 180s largely failed. Managers poured money into expensive

computer technology but balked at underwriting employee skills. In the 10s, companies downsized,

right-sized, and reengineered, Oring their employees by the thousands. This didn¡¦t work either.

All this strip-down restructuring and pricey technology have raised individual productivity only 1 percent

since 18, according to an Andersen Consulting sturdy. It also has dropped employee morals to record low,

filled workplaces with fear and paranoia, and depleted company coffers of billions of dollars.

Clearly a new approach is needed, one that promotes people over processes. That¡¦s the message of The People

Principle.

People are illogical creatures often driven by emotion. They are not machines. They do not produce on

command. They produce because they are motivated from within. You can learn how to tap into this selfmotivation

to increase their work output.

Based on the notion of The People Principle, the company has adopted a series of strategies and tactics for

the implementation of people oriented organization. These strategies are

1- Understanding what motivates people¡¦s behavior

- Becoming the kind of person others want to follow

- Believing in people and getting them to believe in themselves

4- Coaching others to do their best

5- Getting employees to accept responsibility for their own problems

6- Setting up a goal-achievement system that works

¡§It¡¦s very important all the time to tell

people to do it themselves. You don¡¦t

have to stimulate an athlete who is running

the thousand meters. You don¡¦t have

to tell them that they have to win. They

know that. But you can ask them, ¡¥Have

you checked your diet? Have you got

the best trainer?¡¦ That you can do.¡¨

- Paul Fentener Van Vlissingen,

CEO, SHV Holdings (Holland)

The People Era - Hisham I. Amer Page 4

1- Understanding what motivates people¡¦s

behavior

Improving productivity begins with understanding

what motivates people ¡V what makes them want to

work harder.

Most behavior is motivated by an effort to satisfy

needs. Although these needs differ from person to

person, all fall into one of seven categories.

Progression of Needs

The first level is survival. At its most basic, this

a need to stay alive, but it includes emotional and

financial survival as well.

The second level is security. This encompasses a

sense of safety and the freedom to control your own

choices.

Knowledge is the third level.

Problem solving, decision making, satisfying curiosity,

and knowing how to function in different circumstances

fall into this category.

The fourth level is self-esteem. This includes feeling

good about the person him self, loving others, and

experiencing satisfying relationships.

The fifth level is self-expression. You express yourself

in your drive to achieve, move toward purpose,

and affirm uniqueness.

Wisdom ¡V that is, understanding and being able to

relate cause and erect ¡V is the sixth level, followed by

transcendence, in which you move beyond material

values.

We move through the levels in sequence, starting

with survival. Each level must be satisfied before we

can advance to the next.

Our productivity increases as we climb up the ladder.

We become more self-reliant, creative, and motivated

as we try to satisfy more complex needs.

Lower Levels Dominate

Your job as a manager is to determine what kinds of

needs are driving your people¡¦s behavior. They may

be on different need levels in different areas of their

lives. For example, a worker going through bankruptcy

may be in survival mode financially while

seeking wisdom at work.

The catch is that lower level needs often demand

greater attention. Your financially strapped employee

may be so worried about losing his house that he is

not even trying to satisfy his needs for wisdom at

work. As a result, he may be preoccupied and inattentive

on the job.

You cannot solve your employees¡¦ problems but you

can take the time to listen to them without judging

them. People want to feel you understand and accept

them.

In fact, you may solve many of your low-productivity

problems simple by listening, understanding, and

valuing your employees.

- Becoming the kind of person others want to

follow

It is like the management by example. The company

had agreed on a formula to be adopted by all department

heads, branch mangers and CEO. This form

help to set the example for the manager¡¦s subordinates

to follow.

1- Do you know your self?

Leaders discover their talents and strengths and how

to use them to advantage at an early age. Many say

that one of their best learning experiences was being

uprooted and reassigned to a new position or a new

culture. They had to learn new beliefs and customs,

and that made them examine their own responses to

more familiar patterns.

- Are you open to feedback?

Next time someone offers you a little friendly advice,

listen. Leaders, learn form the opinions and experience

of others. The key is finding people whose

opinions you trust. Many executives say that person

is their spouse.

- Are you eager to learn and improve?

Most leaders are lifelong students who continuously

reinvent themselves, adapting to changes around

them. They ask great questions. They know that

acquiring new information keeps them from being

blindsided. Leaders hunger for knowledge.

4- Are you curious? Do you take risks?

Leaders are always pushing the envelope, looking for

adventure. They embrace errors because they offer a

valuable learning experience.

They dare to take risks and explore new options.

Leaders, like experienced skiers, know that success

depends upon leaning forward toward your goal, not

back toward the safety of the hill.

5- Do you concentrate at work?

Interpersonal skills are important but not a critical as

the ability to concentrate on the goals, the company,

and the mission. Leaders are persistent. Their ability

to stay focused makes them effective.

6- Can you balance tradition and change?

There is a lesson to be learned in the adage ¡§Don¡¦t

throw the baby out with the bath water.¡¨ Some things

don¡¦t need to change, others do. So by learning

the culture and tradition of an organization before

making sweeping changes.

7- Do you have open communication channels?

Open interaction enhances the free flow of information.

Consider setting aside some time each day or

week to make yourself available to those around you.

Establishing open forums lets others know you are

receptive to their ideas and suggestions and provides

you with fresh perspectives.

8- Do you work with systems?

You cannot solve every problem. Functioning effectively

within an organization means that sometimes

you have to rely heavily on others in the system to

make decisions and get things done.

- Do you serve as a model or mentor?

Setting a good example is not only a terrific learning

experience of others; it¡¦s part of the process of selfinvention

for leaders. Good leaders coach others,

helping them focus on what¡¦s important, teaching

mentoring, and empowering them.

- Believing in people and getting them to

believe in themselves

It is the task of empowering employees to take

actions. Even when urgency is high, a guiding coalition

is in place, and a vision has been created and

communicated, numerous obstacles can still stop

people from creating change.

At this stage of the process, you want to empower

abroad base of people to take action by removing as

many of those obstacles as possible.

The four major barriers to change are structure,

skills, systems, and supervisor.

1- Structure

The structure of an organization can stifle the initiative

of even the most motivated people. For example,

change often requires cross-functional cooperation.

But organizational walls between different, independent-

minded functions slow down communication

and cooperation.

Layers of middle managers or fragmented resources

and responsibilities are other structural barriers to

initiative and change.

Address these problems ¡V by enforcing cross-functional

cooperation or consolidating resources, for

example ¡V or eventually employees will bail out of

the change program.

- Skills

A lack of skills training can also impede change.

It¡¦s not easy to discard years of habits and attitudes.

People are often taught technical skills, but not the

social skills and attitudes needed to make the change

work.

It¡¦s not enough to say, ¡§Okay, you are empowered,

now go.¡¨ You must give employees the training they

need to use their power.

For example, if change requires teams, you must

teach team building and team working skill. If change

requires managers to empower their employees ¡V

managers who have always made decisions and

handed orders ¡V then you must train these managers

in new employee ¡V relation¡¦s skill.

Training doesn¡¦t mean that you should view your

people as helpless employees who must be shown

every detail. You won¡¦t empower them with that attitude.

With empowerment training, you are simply saying,

¡§We are going to be delegating more, so here¡¦s a

course to help you with your new responsibilities.¡¨

- Systems

Human resources systems, such as performance evaluations

or compensation, promotion, and hiring systems,

must be aligned with change.

If the core of a new vision places customers at the

center of all decisions, for example, then perform-

The People Era - Hisham I. Amer Page 6

ance evaluations and compensation have to be tied to

customer satisfaction results.

People understandably link their efforts with how they

are being evaluated and rewarded. If they are not

rewarded for acting on the vision, then vision takes a

back seat.

4- Supervisors

Supervisors and managers can be foot draggers ¡V and

from their positions of power they can drag the feet of

those around them.

The best solution direct, honest dialogue. Confront

bosses who undercut change, explaining clearly the

vision and their contributions to that vision. If they do

not want to contribute, then they must be let go.

4- Coaching others to do their best

Coaching is not a performance appraisal. The purpose

is to build people and help them discover their potential.

Treating people as unique individuals. Measure

them against them selves, not others, not the CEO.

What percentage of the work force is performing

at peak levels? If your employees are average, the

answer is probably no more than 0%. These top performers

often are eager to learn because they have

high achievement drives.

The job is to get the remaining 80% to follow suit.

One way to do this is by coaching them.

All of us need coaches. Most people work, learn, and

stretch more if they are encouraged and coached, than

if they try to go it alone.

The Coaching Process

Regularly scheduled coaching and counseling sessions

will help improve almost anyone¡¦s performance. Hold

coaching sessions in a completely private setting. Give

your employees your undivided attention; don¡¦t allow

any interruptions or distractions. Your message should

be that nothing is more important than this session.

The coaching process has five parts.

First, asking the employees about their goals or objectives.

Get them to identify not only the goals but also

how they plan to accomplish them; what, if anything,

is holding them back; and what would help them make

progress.

Listening to them without interruption. Guide and help

them discover their own answers.

These first two steps, asking and listening, will take up

three-fourths of your session time. You should spend

80% of this time listening.

Now we are ready to coach the knowledge, skills, or

actions your employees need. Talk about problems or

areas that need improvement. Suggesting an action

to help them overcome an obstacle or move toward

a goal. Keeping the responsibility on their shoulders,

not our¡¦s.

Praising specific behaviors. Point out the talents, attitudes,

and abilities they have that will help them reach

their goals. Telling them that the company believe they

can do it.

Challenging them to become their best. Ask them to

commit to specific results and time frames. Explain

that the company will follow up their progress. Thank

them for the work they have done and tell them how

important they are to your organization. You might

want to write your questions and the coaching process

¡V ask, listen, coach, praise, challenge ¡V on note cards

to keep you on track during the sessions.

5- Getting employees to accept responsibility for

their own problems

A formula to encourage employees to solve their own

problems thus giving them the responsibility to be

more result oriented.

A formula has been adopted to help the company force

to solve their common work problems

1- Defining the problem

- Pinpoint the cause of the problem

- Identify possible solutions

4- Solve the problem removing the cause or take

corrective action.

6- Setting up a goal-achievement system that

works

The company has set a goal achievement system helping

achieving and committing to the company¡¦s overall

goals.

Choosing Well-defined goals

Setting and reaching goals is more an emotional exercise

than an intellectual exercise.

You begin by defining your objectives. Choose six

that are important to you. These might include losing

weigh, getting a new office, finding a new job, saving

a certain amount of money each pay period, solving

a particular problem, and communicating a different

image to people around you. Be specific about what

you want to accomplish.

On a separate note cards, write down each goal and

the date by which you want to attain it. Phrase it as

a statement, such as, ¡§Beginning January 1, I¡¦ll save

10% of my income each month. ¡§Be realistic about the

amount of time you need to achieve your goals. Nothing

happens overnight.

Make sure your goals are consistent with each other,

with your values, and with the goals of people close to

you. If they are not, you will sabotage your best intentions.

Work to Achieve

By working to develop the strengths needed to reach

the goals. These include cultivating the right attitudes,

proper habits, and useful skill.

Evaluating the Progress

By reviewing each goal and either proceed with, revise

or recycle it.

By making employees practicing this goal achievement

system on their personal goals which is shorter

in terms than the company ones. Employees learn to

practice the system in full and se the impact in relatively

short period of time.

Conclusion

People represent the most important company asset. A

probably integrated company force will help improving

productivity, reducing production cost and improving

overall company efficiency.

The company decision to consider the employees as

the most important factor contributing to the company¡¦s

long-term success was attained by setting up a

multidimensional plan that helps creating and maintain

a high caliber company members.

The People Era - Hisham I. Amer Page 8

Introduction

InterMark is a Pan-Arab Marketing

and advertising company,

dedicated only to serve

the Pharmaceutical Industry.

The Mission of InterMark is to

deliver unique Services to the

pharmaceutical and health care

industry that matches the everincreasing

market competition

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