watsonwyatt.com Human Resource Development and Innovation in Thailand By Tayat Sriplung Agenda Innovation in Thailand What are the reasons of lack of “INNOVATION” in Thai Workplace What are the ways to improve “INNOVATION” in Thailand Source: Wikipedia Online Dictionary 2 Copyright © Watson Wyatt Worldwide. All rights reserved Organization Innovation in Thailand 2002 2003 2004 2005 2006 Infrastructuring Dimension 42 47 48 49 50 Sub-Factor Breakdown (Ranking) Basic Infrastructure 38 Technological Infrastructure 48 Scientific Infrastructure 53 Health and Environment 48 Education 48 Source: IMD World Competitiveness Yearbook 2006 Weakness Total Expenditure on R&D (% of GDP) 58 Overall Productivity (PPP)** (GDP per person employed) 56 Business Expenditure on R&D 55 Note: * From 61 Countries, ** Overall Productivity is in Business Efficiency Dimension, International Institute for Management Development 3 Copyright © Watson Wyatt Worldwide. All rights reserved Agenda Innovation in Thailand What are the reasons of lack of “INNOVATION” in Thai Workplace What are the ways to improve “INNOVATION” in Thailand 4 Copyright © Watson Wyatt Worldwide. All rights reserved What are the reasons of the lack of “INNOVATION” In Thai workplace There’re many factors affected the INNOVATION environment in workplace – Organization Structure / Culture / Vision / Strategy – People Leader / Employee Customer / Business Partner / Community – Business Process / Knowledge Management / Technology 5 Copyright © Watson Wyatt Worldwide. All rights reserved Attitude Survey in Workplace Innovation Workplace innovation measures how well a company fosters creativity, asks for suggestions and encourages employees to make suggestion. Asian employees rated their companies quite high, 52% of respondents agreed that their companies encouraged them to make suggestion. Malaysia 41% Thailand 42% Singapore 50% India 53% Asia Pacific 52% 0% 10% 20% Note: percentage of favorable responses 30% 40% 50% 60% Source: WorkAsiaTM 2005 (WorkAsiaTM is employee attitude survey which had been conducted across 11 countries covered 115,000 employees ). 6 Copyright © Watson Wyatt Worldwide. All rights reserved Attitude Survey in Workplace Innovation Thai Employees rate the lowest score among developing countries on question that “I’m encouraged to give suggestions to improve business practices, process, and systems”. My company provides employees with resources to try new ideas that will help the organization boost revenue/reduce expenditures Thailand, 39% Malaysia, 34% Asia Pacific Norm = 43% Singapore, 43% India, 48% Management implements my suggestions where feasible and explains why they are not implemented Thailand, 39% Asia Pacific Norm = 46% Malaysia, 39% Singapore, 50% India, 49% Thailand, 47% I’m encouraged to give suggestions to improve business practices, process, and systems Malaysia, 57% Asia Pacific Norm = 59% 0% 10% India 20% Singapore Singapore, 65% India, 66% 30% Malaysia 40% 50% 60% 70% 80% Thailand Source: WorkAsiaTM 2005 (Employee Attitude Survey), Watson Wyatt Worldwide. 7 Copyright © Watson Wyatt Worldwide. All rights reserved Attitude Survey in Teamwork Asian employees rate teamwork in workgroup quite high. On the negative side, employees strongly tied to their immediate teams run the risk of becoming territorial and losing sight of the bigger pictures (the company), not exception in Thailand. Teamwork Within Department 100% 80% 60% 100% India China 78% 74% Singapore 64% Thailand 57% India China 75% 74% Singapore Thailand 57% 57% 80% 60% India 61% China 55% Singapore 47% Thailand 52% India 66% China 42% 40% 40% 20% Teamwork Across Department Asia Pacific Norm = 66% Asia Pacific Norm = 68% 20% Asia Pacific Norm = 50% Thailand 36% Singapore 30% Asia Pacific Norm = 32% 0% 0% My w ork group w orks effectively as a team People in my w ork group trust each other India China Singapore In my company, there is good teamw ork across departments Rate your company sharing information and ideas across the company Thailand India China Singapore Thailand 8 Copyright © Watson Wyatt Worldwide. All rights reserved IQ Comparison The average intelligence quotient (IQ) of Thai people remains in the “Low” score when ranked internationally. Country IQ Estimate Hong Kong (China) 107 South Korea 106 Japan 105 Taiwan (ROC) 104 Singapore 103 China / New Zealand 100 USA / Denmark / France / Norway 98 Russia / Slovakia 96 Malaysia / Greece 92 Thailand 91 IQ Range Classification 140 and over Genius or near genius 120-140 Very superior intelligence 110-120 Superior intelligence 90-110 Normal or average intelligence 80-90 Dullness 70-80 Borderline deficiency Below 70 Definite feeble-mindedness Source: Wikipedia Online Dictionary 9 Copyright © Watson Wyatt Worldwide. All rights reserved Personality Test – Innovation trait Refer to INNOVATION trait of personality score database (489 Thai Executives), “Persistent” shows the highest score in this trait. However, other innovation trait components (“Risk” and “Tempo”) are quite low. Persistent 10 8 Definitions 7.96 Persistent refers to tendency to be tenacious despite encountering significant obstacles 6 4 7.89 2 Tempo Creative Thinking Risking refers to one’s level of comfort 0 5.29 High 8-10 pts Creative Thinking measures the tendency to try new things and new ways of doing things related to business ventures that involve uncertainty 4.53 Moderate 5-7 pts Low 2-4 pts Tempo refers to the degree to which a person enjoys doing work that need to be done quickly Risking Source: Personality Test Database, Watson Wyatt (Thailand) 10 Copyright © Watson Wyatt Worldwide. All rights reserved Employer Branding Survey From Watson Wyatt Employer Attractiveness Survey, 4th year students from top 4 universities clarified their personal priorities during the first two years after graduation focusing on “Achieve work-life balance” 56% Achieve work-life balance 58% Build social relationships Develop new products/services 37% 43% 33% 29% Achieve personal growth 0% 20% 73% 30% 32% Become a specialist 88% 30% 36% Seek secure employment 88% 32% 65% 34% 40% 73% 63% 60% Strong preference Preference 80% 100% Note: The 4 universities are Chulalongkorn, Thammasart, Kasetsart and King Mongkut Institute of Technology Source: Employer Attractiveness Survey, Watson Wyatt (Thailand), 2006 11 Copyright © Watson Wyatt Worldwide. All rights reserved Strength and Weakness of Thai Employees Management Level (Manager level up) Strength Weakness 1. Visioning (17.98%) 1. People Management (16.36%) 2. Negotiating (15.29%) 2. Inspiration (15.60%) 3. Business Well Rounded (12.52%) 3. Change Leadership (12.84%) Source: Watson Wyatt HR Trend Survey Q2-2006 Employee level (Below Manager Level) Strength Weakness 1. Teamwork (Within department) (26.97%) 1. Communication (26.34%) 2. Problem Solving (14.33%) 2. Initiative (20.17%) 3. Learning (12.64%) 3. Planning & Organization (14.27%) Source: Watson Wyatt HR Trend Survey Q2-2006 12 Copyright © Watson Wyatt Worldwide. All rights reserved Top 3 Difference Competencies for Thai’s and Foreigner’s Employee “Technology”, “Initiative”, and “Learning” are top three major competencies which HR professional rated Thai employees’ competencies are lower than foreigners’. Rank General Level % 1. Technology 21.37 2. Initiative 16.24 3. Learning 11.97 13 Copyright © Watson Wyatt Worldwide. All rights reserved Concluded Reasons There’re several reasons of the lack of “Innovation” in Thai workplace Not like reading’s behavior in Thai people No “Build on Top” Attitude, it’s called “Do it all over again” Team culture problems, for example; – Jealousy – Ineffective in cross functional teamwork Lack of knowledge transfer from generation to generation 14 Copyright © Watson Wyatt Worldwide. All rights reserved Agenda Innovation in Thailand What are the reasons of the lack “INNOVATION” in Thai Workplace What are the ways to improve “INNOVATION” in Thailand 15 Copyright © Watson Wyatt Worldwide. All rights reserved What are the ways to improve “INNOVATION”? School/University Workplace – Examine culture change program – Redefine role of supervisors (to be coacher) – Create an environment that encourages risk-taking and greater sharing of ideas – Emphasize employee involvement 16 Copyright © Watson Wyatt Worldwide. All rights reserved Learning Organization “Learning Organization” is where people continually expand their capacity to crate the results they truly desire and where new and expansive patterns of thinking are nurtured. Organization Level System Thinking Shared Vision Team Level Team Learning Leadership Mental Model Culture Knowledge Management Socialization Personal Mastery Org. Process & Structure Individual Level Coaching & Feedback 17 Copyright © Watson Wyatt Worldwide. All rights reserved Questions and Answers 18 Copyright © Watson Wyatt Worldwide. All rights reserved Thank you Watson Wyatt (Thailand) Limited 6th Floor Gaysorn Place 999 Ploenchit Road Bangkok 10330 Thailand Tel : 66 2 656 1470 Fax: 66 2 656 1469 19 Copyright © Watson Wyatt Worldwide. All rights reserved