1 mission statement and values service station of choice. environmentalism. customer and employee...
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3 Policies I Getting the Best person for the job! Consistency between individual and corporate goals. Decrease culture shock by using local experts and employees. Managing cultural differences in styles of Management, HRM, Marketing etc. Corporate wide Code of Ethics.TRANSCRIPT
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Mission Statement and Values
• “Service Station of Choice”.• Environmentalism.• Customer and employee satisfaction
through TQM.• Respect Human Rights and the Laws.
– Equal employment.• Respect for other cultures.
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Objectives
• Shareholder value.• Continuous training and development.• Image creation Growth in market share.• Future expansion into new markets.
– Managing political risks in going to Russia.• Build long-term relationships both
internally and externally.
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Policies I
• Getting the Best person for the job!• Consistency between individual and corporate
goals.• Decrease culture shock by using local experts
and employees.• Managing cultural differences in styles of
Management, HRM, Marketing etc.• Corporate wide Code of Ethics.
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Policies II
• Empowerment and knowledge workers.• Uniform, agreed corporate culture.• Flexible organization with open, two-way
communication.• HRIS for controlling and decision making.• Proactive change management.
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Organizational StructureCEO
Human ResourcesFinance andAccountingMarketing Supply and
Logistics
RegionalManagerHelsinki
RegionalManager
Northern Finland
RegionalManager
Western Finland
RegionalManager
Eastern Finland
Facility Manager Facility ManagerFacility ManagerFacility Manager
CountryManagerFinland
CountryManager
Baltics
CountryManagerRussia
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Baltics and Russia Organization
• Use the services of the Finnish functional departments
• Have their own operational level • Will have the same organizational structure
as in Finland in the future
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Management Team• Members
– CEO– Country Managers– Functional VP´s
• Tasks– Planning– Organizing– Leading– Controlling
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Benefits of organizational structure
• Regional Management has direct access to functional experts
• Emphasis on teamwork– Management team– Regional managers
• Open vertical and horizontal communication • Clearly divided duties
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Personnel
Country Managers 1+2Functional Managers+staff
435
Regional Managers+staff
428
Facility Managers+staff
100500(+)
Total 674
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Functional Departments
Marketing• VP, 5 Managers (FIN, EST, LAT, LIT, RUS)
HR• VP, 1 Manager +9 Assistants (3/market area)
Finance/Accounting• VP, 1+1 Manager, 4+4 Assistants
Supply/Logistics• VP, 1 Manager +9 Assistants (3/market area)
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Regional Offices
Title People/region• Administrative Assistant/ IT Specialist 2• Public Relations Person 1• Clerks 2• Accountants 2Total 7
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Facilities
Title People/Facility• Facility Manager 1• Associate (Head Manager in Training) 1• Assistant Managers 4• Assistants in Training (as needed)
Total 5-6
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CEO Duties and Specifications
• Implements and monitors the vision and strategy
• Plans and implements future expansion with BPAmoco
• Facilitates communications
• MBA • Extensive managerial
experience• Strong goal
commitment and leadership skills
• Cultural understanding for all three country areas
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Country Managers Duties and Specifications
• Implements and controls business plans
• Surveillance of economical and political situations
• Master’s Degree• Managerial work
experience• Knowledge of
language and culture
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Functional Managers Duties and Specifications
• MKT: product, place, price and promotion
• HR: all HRM functions
• F/A: financial control, investment planning
• S/L: network
• Master´s or Bachelor´s degree
• International work experience
• Leadership and team work skills
• Negotiation skills
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Regional Manager
• Controls and maintains regional operating activities
• Coordinates regional budget• Sets quality standards• Ensures standards are met• Sets policy for quality improvement goals
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Regional Manager, Continued
• Functions as regional spokesperson• Researches and chooses new franchisees,
with country manager• Maintains contacts with local government
officials (Russia only)• Directs local administrative staff• Other duties as assigned
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Regional Manager Requirements
• Masters Degree• Past management experience• Experienced in foreign trade• Knowledge of regional business and culture• Strong communication and interpersonal skills• Ambitious and innovative• Risk-management experience
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Facility Manager
• Controls the everyday operations• Implements the strategies• Evaluates and initiates outsourcing needs• Reports to Regional Manager• Training Associate Facility Managers
(Finland only)• Other duties as assigned
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Assistant Facility Manager
• On-site manager of facility• Oversees quality of franchisees• Oversees work of out-sourced labor• Make daily facility reports to Head Facility
Manager• Other duties assigned by the Head Facility
Manager
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Facility Managers Requirements
• Bachelors or equivalent degree preferred• Extremely effective inter-personal skills• Knowledge of the industry• Fluent in local language and business customs• Ambitious and self-motivated• Some previous service work experience
preferred
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Training
• Corporate culture• customs and standards• commitment to BP Amoco• team spirit and internal
communication• Environment differences• Cross cultural training• Networking for job rotation• Motivate for advancement• Keep low cost level!
• Orientation in Chicago pre-Finnish market entry
• Establish training center in Finland
• On-the-job training in Finland, Russia, and Baltic
• Cooperation with Consulting firms
• Continuos development
Objectives Schedule
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Training
Objective Who trains Method
Orientation BPAmoco (Chicago) Mentoring
Stay in focus withcompany standards
U.S. HR department Initial MeetingVideo Conferences
Develop leadership andcommunication skills
OutsourceConsultants
ClassesVideo Conference
Russian and Baltic’sbusiness courses
Russian professor SeminarsCase studies
CEO, VP, HR
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Training in Finland
Position Objective Who trains Method
Country andRegional Managers
Culture, Marketing,Leadership,Communication
HR team fromChicago
Seminars, Video,Role Play, Internet,Cases
Facility Manager( Finland, Russia,Baltic)
Culture, CustomerService, Leadership,Environment
RegionalManagers,Consultants
Job Rotation, CBT,Internet, VideoConference
Assistant/ Trainee Customer service,Teamwork, Technical
Facility Manager Under study, Jobrotation,Apprenticeship
Franchisees Standards, rules,regulations, coordination
BPAmocoConsultants
Seminars, Video
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Future Expansion
• Cooperation with training Consultants– Fintra, ELC Finland, Business Link Consulting
• Internship program with Universities• Planned career progression
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Recruitment of Management
Finland• Very good supply of
young entry-level managers
• Smaller candidate pool for mid-level managers
Russia and Baltics• Ample supply of
entry-level managers
• Sufficient supply of mid-level managers
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Recruitment I
• CEO
• Country Managers
• Functional Managers
- Internal
- External- Headhunters
- External/Internal- Advertising- Internet
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Recruitment II
• Regional Managers
• Facility Managers
- External- Internet, advertising
- External- Public agencies- Internet, advertising
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Selection ProcessResume & Cover Letter
Employment Tests
Interview
Background Investigation
Psychological Test
Medical Examination
Final Interview
Hiring Decision
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Employment Tests
• IQ-test • Teamwork ability • Job Qualification• Maturity• Attitude Toward Work
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Interview Methods• Panel
– CEO, Country Managers, Functional Managers and Regional Managers
• Nondirective – CEO, Country Managers, Functional Managers, Regional
and Facility Managers• Situational/Behavioral Description
– CEO, Country Managers, Functional Managers, Regional and Facility Managers, Associate/Assistant Facility Managers and Assistant Facility Managers In Training
• Structured Interview– Assistant Facility Managers In Training
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Background Investigation• References• Previous employers • Good citizen
Psychological Test • Motivation • Commitment • Leadership • Communication Medical Test • Physical examination • No Drugs
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Validity and Reliability
• Combination of different tools used in selection process
• More than one interviewer • Amoco tests
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Performance Appraisal in Finland
• Formal system still quite new in Finland– Traditionally has been informal: focus on weaknesses
• Start using MBO as a primary appraisal system– all employees involved– appraisals done semiannually– approaches to convince the Finns to accept a formal system
• development, not punishment• benefits and compensations• improve working conditions• motivation• from weaknesses to strengths• confidentiality
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Appraisal ChartCEO
Human ResourcesFinance andAccountingMarketing Supply and
Logistics
RegionalManagerHelsinki
RegionalManager
Northern Finland
RegionalManager
Western Finland
RegionalManager
Eastern Finland
Facility Manager Facility ManagerFacility ManagerFacility Manager
CountryManagerFinland
CountryManager
Baltics
CountryManagerRussia
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Cultural Modifications
• Appraising is a fairly unfamiliar concept• Finns tend to be discrete• Adaptation of the system to Russia and to the
Baltics• The firing process in Finland is long and difficult
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Solution to CulturalProblems
Training by the HR department
• To the whole organization• To the raters• To the interviewers
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Compensation Policies
• Pay for performance• Competitive base salaries• Salary ranges for each management level• Government legislation• Factors affecting wage rates• Indirect compensation
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Salaries and Incentives
Base Salary (US$) Merit Bonuses Stock Indirect Annual options compensation
CEO 130,000
Country Manager 90,000
Functional VPs 82,000
Regional Manager 55,000
Facility Manager 37,000
Salary Range +/- 25%
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Pay-for-performance - incentives
• MeritsRaise on base salary or lump sum
Based on percentage guidelines Expectations in inflation and purchasing power
• Bonuses Pay for performance Goals set by superior in charge - MBO Percentage of sales
• Stock Options For CEO, Country and Functional Managers Set by Chicago HQ Evaluation based on appraisal (HQ)
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Indirect Compensation
• BenefitsHealth careCareer Development TrainingFlexible working hoursCellular phoneCompany car for top four level managers
• Expatriates to Russia and BalticBasic health care for the familyChild care and school placement20% premium on top of base salaryHousing arrangements