HR Organizational ExcellenceHoward H. GibsonIntellectual Capital Director CIS

Caterpillar is…The world’s largest manufacturer of construction and mining

equipment, diesel and natural gas engines & industrial gas turbines

The technology leader in construction, transportation, forestry,mining, energy, logistics & electric power generation

Number 44 in the Fortune 500 list More than $67 billion in assets Turnover 2009 $32,4 billion Number one in stockholder

returns for the Dow 30 Companies for the last 5 years

CIS presence for 35+ years

16 Dealers

CIS Dealer Geography

How do we recruit employees?

How to we train & develop employees?

How to we keep our employees?

ATTRACTDEVELOP

RETAIN

CIS Intellectual Capital Department

CIS HR Shared Services

(Operational & Strategic)

CIS Training & Development

Shared Services

SafetyDealership HR Organisational Development

Dealer Training &

Development

Building Services

Graduate, Internship & Apprentice

Programmes

Reception & Auxiliary Staff

CIS IT Shared Services

TOTAL REWARDS JOB EVALUATION RECRUITMENTATTRACT

DEVELOPMENT& TRAINING

PERFORMANCEEVALUATION

DEVELOP

TALENTMANAGEMENT

RETAIN

Cat CIS People Strategy

HR ORGANISATIONAL

EXCELLENCE

ATTRACT

• Annual Market Salary Survey

• Employee Opinion Surveys

• Fixed + Variable + Fringe Benefits Adaptable

• Training & Career Development Culture

• Empowerment Culture

• Professional Internal Recruitment Consultants

• Internal & External Recruitment Process = Objective Ownership

• Career Planning vs. Succession Planning Options

• Transparent Functional Growth Based on Objective Performance Evaluation

Total Rewards & Job Evaluation Recruitment

DEVELOP

• Employee-led Process

• Focus on “People”

• Key aim: to identify the best possible career path for employees based potential

• Key drivers: employee motivation, flexibility, talent and opportunity

• Key tools: Talent Management System, Annual Appraisal System, Skill Gap Analysis & Competency Evaluations

• Corporate-led Process

• Focus on “Functions”

• Key aim: Manage the Caterpillar pipeline for position backfill

• Key drivers: function tenure, organizational change, job evaluation (hard and soft skills), skill-gap analysis with identified candidates

• Key tools: Appropriate use of the TMS and rigueur in the internal recruitment process

Career Planning Succession Planning

Develop:12 Leadership

Competencies at Caterpillar

Vision

Execute

Legacy

VisionInnovative ThinkingStrategic AchievementCustomer and Market Insight

LegacyDeveloping OthersManaging PerformanceInterpersonal UnderstandingLeveraging Differences

ExecuteInfluencing OthersLeading ChangeBuilding Organizational CapabilitySelf-ConfidenceEnterprise Focus

Develop: Dealership Development: University Relationship Management

Caterpillar Training Centerat the Admiral S.O. MakarovMaritime Academy, St.-Petersburg

Caterpillar Engine Training Centerat the State Maritime UniversityVladivostok

Develop: University Courses Proposed

Retain: Talent Management

TALENT MANAGEMENT

Internal & External

Recruitment

Appraisal Process

Expatriate Selection

Training & Development

Corporate Diversity

Career Management

Internship, graduate and traineeship

programmes

Knowledge / Know-How Transfer & CRM

Essentials

Succession Management

Employee Motivation

Retain: Talent Management

TALENT MANAGEMENT

Internal & External

Recruitment

Appraisal Process

Expatriate Selection

Training & Development

Corporate Diversity

Career Management

Internship, graduate and traineeship

programmes

Knowledge / Know-How Transfer & CRM

Essentials

Succession Management

Employee Motivation

Senior Field Assignment

Senior Staff / Black Belt

2nd Field Assignment

Staff Assignment

1st Field Assignment

Developmental Assignment

Marketing& Sales

ProductGroups

ServiceCenter

24

23 - 24

22 - 23

21 - 22

21

20 - 21

SalaryGrade

8+ Y

ears

of

Cat

/ In

dust

ry E

xper

ienc

e

CommercialMarketingSupport Product

Black Belt IndustrySupervisor

MarketingManager

Corporate Accounts

IndustryManager

DistrictManager

Depart /Region

Manager

DepartmentManager

Marketing SupportManager

Business IntelligenceManager

Supervisor

Black Belt

ProductManager

Regional ProductManager

Commercial Manager

Supervisor Black Belt

NPI Manager

SG: 25

SG: 26

SG: 27

SG: 28

SG: 29

SG: 31

SG: 30

Marketing Training Class Transfer to Marketing External Hire- -

SG: 26

SG: 27

SG: 25

SG: 28

SG: 29

SG: 30

SG: 31

SegmentGroups

Sta

ff &

Fie

ld S

uppo

rt –

75%

Lead

ersh

ip –

25%

Base Skills & CompetenciesLeadership - Technical – Cultural Diversity – Commercial – Marketing – Dealer Operations – 6Sigma - Application

ProductSupport

PowerSystems

Career Management

Senior Field Assignment

Senior Staff / Black Belt

2nd Field Assignment

Staff Assignment

1st Field Assignment

Developmental Assignment

ProductGroups

ServiceCenter

24

23 - 24

22 - 23

21 - 22

21

20 - 21

SalaryGrade

8+ Y

ears

of

Cat

/ In

dust

ry E

xper

ienc

e

CommercialMarketingSupport Product

Black Belt IndustrySupervisor

MarketingManager

Corporate Accounts

IndustryManager

DistrictManager

Depart /Region

Manager

DepartmentManager

Marketing SupportManager

Business IntelligenceManager

Supervisor

Black Belt

ProductManager

Regional ProductManager

Commercial Manager

Supervisor Black Belt

NPI Manager

SG: 25

SG: 26

SG: 27

SG: 28

SG: 29

SG: 31

SG: 30

Marketing Training Class Transfer to Marketing External Hire- -

SG: 26

SG: 27

SG: 25

SG: 28

SG: 29

SG: 30

SG: 31

SegmentGroups

Sta

ff &

Fie

ld S

uppo

rt –

75%

Lead

ersh

ip –

25%

Base Skills & CompetenciesLeadership - Technical – Cultural Diversity – Commercial – Marketing – Dealer Operations – 6Sigma - Application

ProductSupport

PowerSystems

Career Management

Marketing& Sales

Employee Motivation:

One theory is that motivation is based on 4 relationships…WHEN ALL 4 OF THESE RELATIONSHIPS ARE

STRONG, EMPLOYEES TEND TO BE MOTIVATED AND WILL STAY

IF ANY ONE, OR MORE OF THESE RELATIONSHIPS ARE WEAK, EMPLOYEE EFFORT

IS LIKELY TO SUFFER

EFFORT : APPRAISAL

Employee Motivation:

APPRAISAL : REWARD

REWARD : REQUEST

SATISFACTION : PRODUCTIVITY

HR Organizational Excellence Is Essentially About

Taking a Holistic View of People Management

AND

Removing the ObstaclesTo Employee Productivity

Thank you for your attention

Caterpillar CIS LLCHoward H. Gibson