Human Capital and Labor Practices (2024)

Human Capital and Labor Practices (1) Human Capital and Labor Practices (2)

Highlight Performance

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2025 Target
% Employee engagement score

78%

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Highlight Performance

Osotspa organizes training sessions to help employees develop their potential at both the supervisory and operational levels. In 2023, the Company undertook the following relevant projects:

Frontline Leader Program Training

Recognizing that enhancing the leadership skills of all supervisors can have far-reaching impact, the Company has established the Frontline Leader Program. The objective is to enable the supervisors to impart correct work practices to employees with understanding and accuracy. This initiative ensures the delivery of standardized and high-quality products and services that have a positive impact on consumers, the organization's output, and income. We believe the program is essential to cultivating supervisors into modern leaders capable of effectively managing both tasks and people in the future.

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Out of the total 66 leaders in the company, 58 have received training, representing

88%

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The leaders who received training have applied the knowledge gained and utilized tools to effectively manage their teams, resulting in a reduction in employee cases of wrongdoing in the organization to less than

10 per year

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The leaders who received training were able to present their performance to executives through an approach based on determined structures.

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The leaders who received training applied feedback principles with subordinates every

2 month

Being Proactive with Non-Head Training

The Company has also organized a training program for employees to develop and strengthen their ability to become self-leaders, cultivate motivation, and foster wisdom through a proactive work ethic. The goal is to systematically improve work efficiency through practice and to allow participants to apply the learned skills effectively in their daily work.

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of the 70 training participants were employees nominated by functional executives

100%

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There was an overall satisfaction rate from participants in the training with regards to applying the acquired knowledge in their respective departments

85%

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Participants in the training have successfully applied the knowledge to enhance existing projects and initiate new ones. Each unit within the agency has implemented at least one project aimed at increasing efficiency and effectiveness within the organization

Osotspa Open House 2023

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Osotspa welcomes the younger generations and the public to engage in discussions with our executives at the Osotspa Head Office and Beverage Production and Packaging Plants (Ayutthaya).

The event featured a panel discussion with the management team, who shared their knowledge and experience in marketing and the Company’s digital transformation.

  • ‘Meet the CEO and Leaders’ an exceptional opportunity for a private meeting with Osotspa's CEO and the management teams from various departments. The teams shared their thoughts, experiences, culture, and stories about the challenges of working in the FMCG industry.
  • ‘Fast-Track Job Application’ an opportunity to explore various job positions offered by Osotspa, both full-time or internship roles, and to submit an early application.
  • At the Osotspa Open House event, participants exchanged experiences, made new friends, and learned new things.

Internship Program

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The O-Interns 2023 internship program provides students with hands-on learning experiences, emphasizing engagement with dynamic projects throughout the internship duration. Our goal is to enable students to develop skills across various domains, with the aspiration that they will utilize the knowledge and experience acquired during their internships to benefit both themselves and society in the future.

Employee Performance Evaluation

Osotspa divides its employee performance evaluations into 3 parts: Performance Management, 360-degree Evaluation, and Team-based Evaluation. Details are as follows

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(1) Performance Management

The Company has implemented a Performance Management System to effectively oversee employee performance, aligning their efforts with organizational goals and objectives. This system enables employees to advance in their careers while ensuring fair and appropriate compensation based on their work performance.

Evaluation Criteria:

The Performance Management System encompasses objective setting, operational indicators, and systematic evaluation. The process includes

  • Objective Setting, which involves establishing annual performance goals and various plans at the beginning of the year for employees to utilize as guidelines for their operations and self-development throughout the year
  • Mid-Year Review is conducted to measure and track performance, ensuring that employees can achieve their work targets. During this review, supervisors provide training and conduct feedback sessions to support employees in reaching their goals.
  • Performance Appraisal compares target achievement with actual performance to measure work success in the previous year. It aims to identify areas needing improvement and to determine goals for the following years based on the results obtained.

The Performance Management System at Osotspa Group is applied to employees at all levels, both domestically and abroad. The assessments are conducted twice per year.

Real-time Feedback for Evaluation System

The Company has promoted an exchange of feedback between employees and supervisors, known as Agile Conversations, which can take place immediately and at any time. Employees and supervisors can discuss what has been done well, what needs to be improved, and whether new initiatives should be started or dropped, as well as performance and career paths. These discussions serve to promote team success, organizational growth, and employee career development.

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(2) 360 Degree Evaluation

The Company has implemented a 360-degree evaluation system to assess the abilities and performance of its employees. This Performance Feedback assessment is customized to each employee's roles and responsibilities, enabling an evaluation of their performance against both organizational standards and individual potential. The evaluation process includes gathering comprehensive feedback from individuals associated with the employee, including supervisors, subordinates, team colleagues, colleagues from other departments, and lower-level employees who do not report directly to the same hierarchy.

Evaluation Criteria:

The 360-degree assessment is based on the 5 areas of the OSP Leadership Profile

  • Driving Results with Passion
  • Thinking End-to-End
  • Challenging Yourself to Take Risks
  • Taking Others with You
  • Learning Agility

The evaluators consist of the employee, supervisors, subordinates, team colleagues, colleagues from other departments, and lower-level employees who do not report directly to the same hierarchy.

The 360-degree evaluation applies to all levels of employees within the Osotspa Group, both domestically and internationally, with assessments conducted twice per year.

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(3) Team-based Evaluation

To support the team's goals and success, the Company has implemented performance evaluations as part of the team-based performance recognition. This process involves setting goals as a team and communicating them to everyone in the team. The clear definition of each team member's roles and responsibilities ensures alignment with the team's objectives. The evaluation criteria emphasize collaborative teamwork, guided by the following principles

Evaluation Criteria:

ผลการปฏิบัติงานของทีม ซึ่งพิจารณาจาก

  • Total Sales of the Team
  • Growth Rate of Team Sales
  • Team Performance and Behavior

This evaluation is conducted on the sales team on both a quarterly and annual basis.

Promoting Employee Well-being

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Employee Adaptation to the Digital Era

To foster employee well-being, embrace the digital era, and streamline HR management processes, Osotspa utilizes a cloud-based digital platform known as O-In-1. All employees can access this service from anywhere, at any time, via their smartphones and computers. The platform enables employees to handle their individual work and interact with their teams through digital tools. Furthermore, the platform features activities that increase employee engagement and cultivate a positive workplace culture. This includes presenting awards and recognition for employee accomplishment

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Fast Forward 10X Project

The Fast Forward 10X Project takes a multifaceted approach to organizational transformation. This includes a focus on enhancing work processes to achieve higher levels of efficiency, agility, and speed. Furthermore, the project is dedicated to equipping employees with diverse skill sets and extensive knowledge while promoting the integration of digital technologies with adaptability. The initiative, which emphasizes a culture of continuous learning, seeks to maximize the organization's potential, strengthen competitiveness, and drive sustainable growth.

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Flexibility in the Workplace

With restrictions on office attendance, Osotspa has implemented a basic platform to facilitate efficient remote work. This includes the use of MS Teams, an e-form service, and remote request submission through the Office Smart Service Request platform. Additionally, for employees required to be in office, 'hot desks' have been provided to minimize health risks and offer flexibility in a dynamic work environment.

Osotspa embraces employment principles that can accommodate the diverse needs of individuals and their job nature.

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Flexible Working Hours

Since 2018, Osotspa has implemented flexible working hours for office employees to align with individual needs and accommodate varying traffic conditions. These efforts also reflect the organization's commitment to ethics, responsibility, and integrity while ensuring that work standards and responsibilities are maintained.

Employees have the flexibility to manage their working hours according to their preference, providing them with peace of mind. This flexibility not only enhances work efficiency but also contributes to keeping employees safe during a public health crisis.

Since March 2020, the Company has adjusted guidelines for employees to allow for Work From Home (WFH) as needed. In addition, Osotspa has provided equipment to support operations and essential platforms for efficient remote work, including notebook computers, ergonomic chairs, mobile phones, and communication channels across multiple platforms. This set-up allows employees to continue their work while also saving time and money on travel.

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Childcare Facilities and Contributions

Since 1976, Osotspa has supported employees by alleviating the financial burden of their children's education via educational scholarships for the elementary to undergraduate levels.

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Lactation Facilities and Benefits

Understanding the critical nature of maternal and infant health, Osotspa provides private, clean, and safe rooms for female employees to collect breast milk.

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Part-Time Employment

Osotspa has introduced part-time employment in response to the need for diverse employment models that meet both business needs and individual choices. Part-time employment allows for a more flexible work schedule, with employees working fewer hours than full-time employees. This agreement is formalized by a written employment contract between the Company and the individuals. The contract specifies clear terms such as the number of days and hours worked per week or month, compensation, benefits, and other relevant terms.

Sustainability AwardsOur commitment and achievement of corporate sustainability Activity HighlightsCommunicate our unwavering commitment to economic, social, environmental, and corporate governance responsibilities

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Human Capital and Labor Practices (2024)

FAQs

What is the human capital answer? ›

2. What is human capital and why does it matter? Human capital consists of the knowledge, skills, and health that people invest in and accumulate throughout their lives, enabling them to realize their potential as productive members of society.

What is human capital and labor? ›

For instance, human capital refers to the knowledge and personal attributes possessed by an individual, enabling them to perform labor. Contrary, labor refers to the physical and mental effort used in the production of commodities and delivering services.

What is the human capital quizlet? ›

Human capital is the quantity, knowledge and skills of the workers in an economy. It differs from strictly the number of workers available because human capital also incorporates the knowledge and skills of the workers.

What is human capital labor examples? ›

Skilled and trained workers are called “human capital” and are paid higher wages because they bring more than their physical capacity to the task. For example, an accountant's job requires the analysis of financial data for a company.

What are four examples of human capital? ›

Examples of human capital include communication skills, education, technical skills, creativity, experience, problem-solving skills, mental health, and personal resilience.

Which best defines human capital? ›

Human capital can be broadly defined as the stock of knowledge, skills and other personal characteristics embodied in people that helps them to be productive.

What are the three kinds of human capital? ›

There are various types of human capital, including technical skills, soft skills, intellectual capital, institutional knowledge, and organizational capital. Technical Skills: This type of human capital includes specific abilities or knowledge related to a particular job or industry.

What is labor and capital? ›

Labor and capital are the two main factors of production in economics. Labor can be defined as the people (together with their mental work) necessary to produce a good or service. On the other hand, capital is the human-made tools, machinery, or devices that are used to produce a good or service.

What are the four factors of human capital? ›

These factors are explained below.
  • i. Education. Education not only raises the standard and quality of living but also encourages modern attitudes of people. ...
  • ii. Health. There is a saying “The greatest wealth is health”. ...
  • iii. On-the-Job Training. ...
  • iv. Migration. ...
  • v. Information.

What is the focus of human capital? ›

It is a strategic approach focused on investing in people to unlock their potential and improve their performance in the workplace. At its core, human capital development recognizes that individuals are the most valuable assets within any organization.

Why is it called human capital? ›

They are called human capital because people cannot be separated from their knowledge, skills, health, or values in the way they can be separated from their financial and physical assets. Education, training, and health are the most important investments in human capital.

What is human capital vs human? ›

Both human resources and human capital are concepts introduced for achieving maximum productivity and profits. However, the critical difference is that human resources focus on an employee's potential skills or talent. In contrast, human capital focuses on an employee's current skills and experience.

Why is human capital important? ›

Income and health depend upon the level of education, skill formation, etc. The formation of human capital increases these skills and improves the quality of life of the masses. Better quality of population means more economic growth.

What are three examples of labor? ›

Examples of Labor in Economics
  • The majority of the population is employed in the agricultural sector, which employs 60% of the labor force.
  • The next largest sector is manufacturing, which employs 20% of the labor force.
  • The remaining 20% of the labor force is employed in the service sector.
Sep 18, 2022

How does human capital affect labor productivity? ›

Improvements in the abilities and efficiency of individual workers, often referred to as increases in human capital, allow each individual worker to produce more goods and services per hour, and therefore increase labor productivity.

What is human capital also known as? ›

Human capital or human assets is a concept used by economists to designate personal attributes considered useful in the production process. It encompasses employee knowledge, skills, know-how, good health, and education.

What does human capital mean in a sentence? ›

noun. the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community: Education is an investment in human capital that pays off in terms of higher productivity.

What is the human capital theory? ›

Human capital theory, initially formulated by Becker (1962) and Rosen (1976), argues that individual workers have a set of skills or abilities which they can improve or accumulate through training and education.

What does determining the human capital mean? ›

Human capital is the intangible economic value of a worker's experience and skills. This includes factors like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

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