Create Positive Motivation for Better Sustainability Business Growth The Theories Expectancy theory of motivation: • Valence: Reward • Expectancy: Efforts >> Performance • Instrumentality: Performance >> Rewards 2 new ideas in Motivation: • Eustress, strength, and hope • Positive energy, and full engagement Company Introduction “PT Emway Globalindo” , established Year 1994 Vision & Mission Core Business Organization Core Value Being the best in class in delivering toys for children in Indonesia Toys Importer, Distributor Toys Principal, Private Brands (EMCO) Joint Ventures Owned, Family Operated Established as the biggest toys distributors in Indonesia with steady business growth and market dominance (est. 40% market share in Toys) The only 20+ years toys distributors company in Indonesia, proven to surpass market & situational challenges throughout the time MW 1.0 (1994-2018) MW 2.0 (2018-NOW) Every decision centralized to BODs Micro-manage Information is hard to find Seniority by Age/Work period Finding Solutions together Each person is the CEO of their position Information is accessible Seniority by Job role “My Way of The highway” “Boss is ALWAYS right” “NYAMAN” “Sink or Swim” “Always thinks of what’s right for the Company” “TERTANTANG” Key Pain points – Problem Identifications Human Capital Programs Employee Distribution Structure Organization Distribution As Family Company, Human Capital program focusing on short plan target – increase employee productivity to earn more revenue and profit. Management (High – Medium – Low) distribution (in term of numbers, permanent staff) High : VP Director 6 personnel Medium : Manager – GM Level 46 personnel Low : Supervisor – Operation 331 personnel 18% 28% 28% >45 years 41% 5-10 years 30-45 years 41% Employee Distribution by Ages (Period Stay) Key Problem Identification Ages <30 years 0-5 years 10-15 years 15% >45 years : 18 % 30 – 45 Years : 42% < 30 years : 41% 29% Period Stay Position (Structure) Ages (long stay in company) No visible Career path No People Development 15+ years >15 years : 28 % 10-15 years : 15% 5 – 10 years : 30% <5 years : 28 % Salaries No KPI affecting salaries Analysis Organization Behavior Key Components Structure Organization Human Capital Key Issue Behavior No visible Career path, due to it’s previous nature of a Family company Stay Period in Company No People Development, due to the hierarchy of foreign family company, limiting the access to information & data (lack of trust) Salaries No KPI affecting in generalized salaries, since it’s closed information on the company performance to it’s employee Key Reference Solution Restructure, close non-performing divisions and solidify existing divisions Standarize data templates & SOPs maing data accessible only to the proper persons KPI implementation which can affect income to motivate personnel to achieve their targets to get reward and avoid punishment How to Improve Employee Motivation Strategy Approach & Recommendation Key Components Strategy Approach Structure Organization Streamlining the Company Structure, making sure less dotted line and clear chain of command. Stay Period in Company With clear Job Description (less grey area), each personnel can perform accordingly and properly Salaries More clear salary scheme with the implementation of employee KPI Recommendation Commitment on the structural hierarchy Clear Carrier Path for each Department Socialize & solidifies the Job Description to older, senior, ‘dinosaur’ employees. Either sink or swim with the new current Create internal Contests to further boost performance and achievable Action Plan – Motivation Improvement Key Components Structure Organization Stay Period in Company Salaries Phase-1 Phase-2 Phase-3 New streamlined and clear Company Structure Improvise work flow with updated system & SOPs Cut-loss unproductive personnel; Disrupt the ‘Nyaman zone’ Invest in upgrading Company system Implement New MW2.0 vision, challenging the old way to start moving out of their comfort zone Review MW2.0 vision, upgrade for improvement when needed KPI introduction with its punishment & reward scheme Aligning and enhance KPI integrated, improve performance and benefit employee Long Term Incentive (Bonus, stock) for High Performance talent Enhance Organization Structure referring to Business Strategy Summaries 1 2 3 Shareholders agrees that Changes in management & company structure to achieve business growth trajectory. A tactical revolution in the Company Upgrading MW 1.0 to MW 2.0 creates opportunities for employees who likes to be challenged ( and motivated ) but will be threat for employees who likes comfort and status quo Based on Survey : New Vision (Organizational restructuring) , New Salary Scheme , Employee Assessment Objectivity (KPI scheme) are three important things that motivate employees Everyone needs motivation to deliver Excellent Resuilts THANK YOU