4 th annual learning world 2010
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4 TH Annual LEARNING WORLD 2010. Zafar Aziz Osmani Hong Kong February 25, 2010. Manage Post Recession Transition of Teams to Ensure Productivity And Strategic Competitive Advantage. Yesterday . . . . . - PowerPoint PPT PresentationTRANSCRIPT
4TH ANNUAL LEARNING WORLD 2010
Zafar Aziz OsmaniHong Kong
February 25, 2010
Manage Post Recession
Transition of Teams to Ensure Productivity And
Strategic Competitive Advantage
“While we have come through the most difficult period of financial tsunami, the external environment is still fraught with uncertainties and foundations of recovery are not yet firm.”
John Tsang Chun- wahFinancial Secretary, Hong KongFebruary 24, 2010
Yesterday . . . .
Themes from Davos 2010Rethink, Redesign and Rebuild
A YEAR ON FROM THE BLEAKEST OF THE WORLD ECONOMIC FORUM , HOPES WERE HIGH FROM DAVOS 2010
EMERGING MARKETS PROVIDE AN UPBEAT WORLD VIEW TO ENCOUNTER PESSIMISM
THE DEBATE AND OUTCOMES PROVED INDECISIVE
“NOTHING IS GOING TO HAPPEN. WHAT‘S GOING TO HAPPEN IN STATUS QUO”
IT WAS FULL OF HOPE AND OPTIMISM ABOUT EMERGING MARKETS – PROMISE FROM CHINA
Presentation Outline
COMPARATIVE TRENDSTHE WEST, ASIA
& EMERGING MARKETS
2007 2008 2009 F 2010 F0123456789
10Asis Pacific
Asis Pacific
Asia Pacific – GDP Trend
Asian Countries GDP Trends
2007 2008 2009 F 2010 F
-6-4-202468
101214
Trends
SingaporeMalaysiaHong KongIndonesiaThailandChinaIndiaG
DP
Rate
Recovery Trends in US & China
China CHINA UNITED STATES
RECENT HIGHLIGHTS IN ASIA
• Singapore's economy leaps out of recession, expanding in the second quarter at its fastest rate in nearly 6 years, thanks to a surge in biomedical production and construction.
• Hong Kong pulls out of its deepest recession since the Asian financial
crisis in the second quarter, growing by a much faster-than-expected 3.3 percent from the previous quarter.
• Taiwan's economy grows for the first time in over a year in the second quarter on an annualized basis and officials say they expected rising demand from China to support a strong recovery.
• Thailand's economy emerges from its worst recession in 11 years in the second quarter, growing 2.3 percent from the first quarter as manufacturing rebounded, adding to signs of recovery in Asia's export-reliant economies. Sept 11 –
• Japan's economy grows 0.6 percent in the three months to June, less than preliminary figures had shown but confirming that the economy crawled out of recession after a full year of sharp contraction.
OTHER PARTS OF WORLD
• Germany exits recession in the second quarter despite a massive drop in inventories and restocking by firms could spur the economy to faster growth.
• Brazil exits its short-lived recession as second-quarter numbers show stronger-than-expected 1.9 percent return to growth for Latin America's largest economy after only two quarters of contraction.
• Sweden inches out of recession, after contracting for four quarters in a row. The economy ekes out a 0.2 percent gain in the second quarter from the previous quarter.
• New Zealand unexpectedly ends its longest recession on record.
HUMAN RESOURCES
STRATEGIES AND RESPONSE
TO RECESSION
KEY UNIVERSAL RESPONSE
Downsizing &
Retrenchment
Salary Freezes
& Reducti
on
Reductions in L
& D Expendi
ture
KEY UNIVERSAL RESPONSE
Downsizing
DOWNSIZING
‘In the annual American Express/CFO Research Global Business & Spending Monitor (article dated Sep 2009), 285
senior finance executives from the U.S., Europe, Canada, Mexico, Asia, and
Australia were surveyed upon the global financial crisis. When the discussion of
layoffs came up, half the respondents in Asia and Australia anticipated a decrease
in headcount.’
Downsizing Issues
Psychological
Physical Behavior
Démotivation Stress Productivity reduced
Insecurity Fatigue Higher turn-over
Trust Déficit Burn-out Higher absenteism
Credibility Damage Change résistance
Managing Downsizing
Golden Handshake Lump sum payments Supported by
psychological pressures
Outsourcing Identified services
outsourced to third party
Employees given GHS plus option of service in OS companies
Some innovations Creation of OS
Companies Giving ownership
to separated employees
Give flexibility to expand the scope of services
KEY UNIVERSAL RESPONSE
Salary Freezes & Reduction
SALARY FREEZES / REDUCTION
‘The number of companies considering decreasing, freezing and have already decreased/frozen salary increase budgets have more than doubled in Asia in the past eight months from 41.0% to 83.4%. (Source: Financial Express – 16/12/08)’
SALARY FREEZE / REDUCTION
Asian companies revised 2009 salary increases downwards by 4.6%
Companies in almost all markets have been cutting manpower costs
Existing employees expected to do more
Insecurity amongst employees
De-motivated staff looking for opportunities elsewhere
Issues of Absenteeism
Responses Impacts
KEY UNIVERSAL RESPONSE
Reductions in L & D
Expenditure
‘According to a study by IT research and advisory firm Gartner, investment in IT training and software certification was set to decline by 25% in the Asia-Pacific region (July 2009).’
CUT IN L & D EXPENDITURES
CUT IN L & D EXPENDITURES
Lesser Training Opportunities for staff
Less focus on Talent Development
IT Training tremendously affected
De-motivated staff looking for opportunities elsewhere
Limits skill of employees
Emergence of a gap in future skills
Responses Impacts
POST RECESSION TRENDS AND STRATEGIES
Hiring Trends China – Hong Kong - Singapore
Hiring Trends – ChinaSector Analysis
Hiring Trends in Hong Kong
And Singapore
Salary Increase
Incentives & Bonus
MANAGING AHEAD
2010 & BEYOND
Broad Forward Strategies
Fresh Look At Organization
StructureNew Paradigm on Employee
EngagementTalent Acquisition /
RetentionInnovative
Compensation ManagementBuilding New
Leadership SkillsBridging Widened
Skills Gap
Fresh Look at Organization Structure
• Fully leveraged by technology
• Complete review of business processes
• Elimination of all non value added steps and positions
• New positions fully loaded with multi-tasking
• Effective re-deployment of work force
Evolve New Organization Structure
New Paradigm of Engagement
• Restoration Of Sense Of Security
• Trust Building And Reducing Credibility Gaps
• Confidence Building Measures
• Regular Structured Two Way Communication
• Involvement In Business Decision Making Process
Total Engagement
and Involvement of New and Old People Resources
Talent Acquisition & Retention
• Talent acquisition & retention in high demand markets
• Structured capacity building programs with fast track skills building
• Finding best HR practices from developed markets which can offer solutions
Enhancing Managemen
t Competenci
es In Specific
Dimensions
Innovative Compensation Trends
• Compensation Structure with Visible Linkage to• Competency
Enhancement• Value Addition• Innovation
• Contribution towards building organization trust, confidence, credibility and team work
A Broader Scope of
Compensation
Management
Beyond Financial Frontiers
Building New Leadership Competencies
• Critical requirement of building visionary / futuristic leadership competencies in organization re-building
• Change Management thought leadership to evolve creative solutions for successful institutional transformation
Bringing Modern
Leadership / Change
Management
Competencies In
Emerging Markets
Bridging Widened Skills Gap
• Serious gaps at middle management leadership due to reduced focus on training
• Exposure as a result of inexperienced inductions
• Critical shortage of change management talent with required competencies
Managing Widened Skills Gap
Due To DownsizingAnd Cut In L
& D Expenditure
CONCLUDING PICTURE
ON
CURRENT TRENDS
HR Response to Recession Impact