the ”bp – centro” finland case our proposal for ”implementing the hr part of the strategic...
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The ”BP – Centro” Finland Case
Our Proposal for
”Implementing the HR Part of the Strategic Plan”
Mikkeli, June 2002
2
Whole Agenda
• General Objectives• Structure• Planning Needs• Job Description• Recruitment• Selection• Training• Performance Appraisal• Compensation
Team 1
Objectives and policies
June, 2002
Christina Brehme
Cécile Rozuel
Evelyn Wee
4
Agenda
• Mission Statement and Commitments
• Our philosophy
• Values and Ethics
• Legislation and Governments
• Long Term Organizational Objectives
• Short Term Organizational Goals
• Attitude Toward Change
• Policies
5
Mission Statement and Commitments
• We are dedicated to providing high quality products and services to our customers 24 hours a day, 7 days a week, 365 days a year.
• We are involved in the real estate business and aim to develop a concept of shopping complex through Eastern European countries.
• We are commited to satisfy:
- our shareholders guaranteeing performance and profitability
- our customers providing a Total Quality Management
• We are dedicated to work in harmony with:
- the community we are operating in
- the stakeholders affected by our activities (unions, environmental actors…)
6
Our philosophy
We aim to maximize our CAPITAL
C ommitment
A bility
P erformance
I mprovement
T echnology
A bide by the law
L oyalty
7
Values and Ethics
We believe in:
• The respect of Human Rights as stated in the UN Declaration of Human Rights
• The protection of the natural environment
• High quality service delivery commited to customer satisfaction
• Innovation and collaboration for continuous improvement
• Supportive leadership to build a positive organizational atmosphere
• Fairness and honesty in human relationships
• BP Centro as a worldwide reference for excellence
8
Legislation and Governments
• Work legislation
- We abide by the legal requirements in terms of work legislation in the countries and regions we are operating
- We apply the principle "Equal pay for Equal Work"
• Governments
- We aim to ensure good relationships with both national, regional and local governments
- We aim to work closely with local governments in a mutually beneficial relationship
- We aim to be fair, direct and adaptable to the political environment we are working in
9
Corporate culture
• Management style- participative management- supportive leadership
• A global company in a global world- promote common references ("think global")- manage diversity- be adaptable to changing cultural environments ("act local")- facilitate cultural exchanges through mobility
• Concern for employees’ development- organize training for all- plan career development and internal promotion- be open, fair and efficient- offer Equal Employment Opportunities and fight work discrimination
10
Long Term Organizational Objectives
• Promote the BP Centro corporate culture.
• Build excellence using edge-cutting technology and state-of-the-art HRM methods.
• Create training centers to develop KSAs, continuously improve service delivery and enhance corporate loyalty.
• Create an effective organizational structure which encourages initiatives, self-assessment, communication and collaboration.
• Design an effective compensation policy that advocates pay for performance.
11
Short Term Organizational Goals
• Corporate language:
- English
- bilingualism as the rule because hiring local Facility Managers
• Facilitate the integration of BP Centro values and culture through language, dress and socialization practices
• Build long-term relationships and enhance efficient communication and collaboration with franchisees
• Encourage communication among Facility management teams
• Guarantee effective customer service 24/7 and 365 days a year
12
Attitude toward change
• Be responsive to change in terms of quality management
• Adopt a proactive attitude toward change
• Step 1:
- need for some stability and landmarks so as to set up the company’s reputation
- a global concept needs established internal rules to be perceived as global by customers
- be directive to create coherence
• Step 2:
- adapt to the economic and social environment
- anticipate future opportunities
13
Policies
1. Accountabiliy to stakeholders:
- relationship management (coordinate relationships with stakeholders to avoid prejudicial activities to environment and the community)
- impact assessment to evaluate the consequences of business activities on people (proactive approach)
2. Relationship with employees:
- employee empowerment
- reward excellence through bonuses or share options
- always get the best person for the job, from within if possible
- make sure individual goals match corporate goals
- provide possibilities to balance work life and family life
14
Policies
3. Internal structure:- favor constant tapping of upcoming technology to:
# minimize labor cost# develop a HRIS to enhance communication, improve efficiency of information sharing, manage career development
- build a team-oriented organization- develop common project and goals - outsource when feasible
4. Monitoring, Controlling:- measure results regularly against set goals and re-evaluate goals if necessary- benchmark regularly for continuous improvement - encourage structured feedbacks - organize internal social auditing
Tan Chong Sun
Tuulikki Pöllänen
Lena Hoppe-Schumacher
Team 2
Creating the H.R. Organizational Structures
June, 2002
16
Agenda
• The Organizational Chart
• Job Description
• The Location
17
Organizational Chart
CountrymanagerBaltic
HeadquarterBP
Senior-management
RegionalManager
Headquarter Europe ”BP-Centro” (incl. Finland, Russia. Baltic)
incl. Marketing, HRM, Finance, Operation ”VP”
CountrymanagerFinland
CountrymanagerRussia
RegionalManager
RegionalManager
FacilityManager
FacilityManager
FacilityManager
FacilityManager
ContractEmployees
ContractEmployees
ContractEmployees
MiddleManagement
LabourLevel
AMHRM
AMFinance
AMOperation
AMMarketing
Area SpecificOfficer*
* in the first project stage, only one group of Area Managers which are responsible for all three countries (cross function)
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Job Description
HeadquarterEurope
CountryManager
RegionalManager
FacilityManager
ContractEmployee
CEO
Coordinates Finland, Russia and the Baltic Countries
Communicates his reports to the US Headquarters
Controls and cooperates with VP and managers from different chart levels
Assume the strategic movements of the organization outside the US.
Team consisting of Americans and locals
Workstream Responsibilities
VPs
Marketing, HRM, Finance, Operations ( in European HQ with the CEO)
HRMMulti-cultural (USA, Finland)Selecting experienced and mobile managersTraining and development
Report to the CEO
Responsible for strategic plan implementation
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HeadquarterEurope
CountryManager
RegionalManager
FacilityManager
ContractEmployee
Report to the CEO
Responsible for the three geographic areas: Finland, Russia, Baltic.
Job Description
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HeadquarterEurope
CountryManager
RegionalManager
FacilityManager
ContractEmployee
Responsible for site locations and openings (uniformity)
Strategy within the different areas
Should be locals who know the market
Reports to Country Manager
Supervise Facility managers
Connection between the functional managers and the facility managers
Job Description
21
HeadquarterEurope
CountryManager
RegionalManager
FacilityManager
ContractEmployee
Day-to-day Management
Organize the building up
Find the most suitable locations for the facilities
Find best and the most cost efficient contractors to carry out the construction work.
Does the needed outsourcing-contracts
Supervise homogeneity of the facilities
Report to the Regional manager
Marketing and promotion
Job Description
22
HeadquarterEurope
CountryManager
RegionalManager
FacilityManager
ContractEmployee
Commitment with the company
Career opportunities
Temporary jobs: the ever-changing economic climate and increasingly competitive global market does not enable BP to offer 'jobs for life'
Possibility in developing skills: formation courses, seminars, events…
Job Description
23
The Regions
Locations
Red: First year
Centers in Helsinki, Tampere,
Kuopio, Oulu
Green: Following years expansion to
the Baltics and Russia
Centers in Tallinn, Riga,
Vilnius, St. Petersburg,
Moscow and some more in
Finland and Russia
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Russia and Baltic Countries
First year: Experiences in Finland
Second year: Expansion to the Baltics and Russia
First not many Americans, but Finns, in the management
Local people will be trained and then involved in the management
In the following years continuous expansion in all of the regions
Team3
Job Requirements Planning-Future Staffing Needs
June, 2002
Emily Lim
Michael Sauer
Marc Hoppichler
26
Agenda
• Job Requirements
• Job Analysis Planning
• Promotion or Job Rotation
• Plan
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Job Requirements
HeadquarterEurope
CountryManager
RegionalManager
FacilityManager
ContractEmployee
CEO
Coordinates Finland, Russia and the Baltic Countries
Top Management People
Set the Goals for the Project
Built up a Global Team
Supervise the project
Search for Sponsors (internal)
Relation with stakeholders
VPs
Marketing, HRM, Finance, Operations ( in European HQ with the CEO)
Work Hand in Hand with CEO
Responsible for strategic plan implementation
Specialists in his sector
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HeadquarterEurope
Job Requirements
CountryManager
Ability to coordinate and set priorities
Time management and decision quality concerned
Excellent communication skills
Professional ability to interact with internal and external clients at all levels
RegionalManager
FacilityManager
ContractEmployee
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HeadquarterEurope
Job Requirements
CountryManager
RegionalManager
Experience in direct contact with clients and negotiation of contracts
Knowledge of team motivation techniques
Very good knowledge of English and another language (Finnish, Russian, Estonian, Latvian, Lithuanian)
FacilityManager
ContractEmployee
30
HeadquarterEurope
CountryManager
RegionalManager
FacilityManager
ContractEmployee
Knowledge about the local region
Experience in Business and Techniques
Very good knowledge of the local language
Motivate the Employees
Implement the firm guidelines direct to the customer / end user
Gives guidance to facility coordinators
Job Requirements
31
HeadquarterEurope
Job Requirements
Openness and Friendliness towards customers
Enthusiasm to work and willingness to take responsibility
Knowledge of the country’s specific language
Service-oriented attitude
CountryManager
RegionalManager
FacilityManager
ContractEmployee
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Job Analysis Planning
"Job Analysis in a Changing Environment"
• Finland: test market, movement to another market• Dynamic environment: jobs demand rapid change, data won't be outdated
33
Promotion or Job rotation
Promotion:
Better fit for organization
Mixture from internal and external applicants
Job rotation:
Ability to switch managers to different regions
But no rotation in the sense of different functional areas
34
Plan Year 1
• Think global (American vision to develop the concept worldwide)
• Act local (adapt the management style to the local culture and hire local junior managers).
• Open facilities in strategic locations (4 centers in Finland)
• Management in Finland is built with the help of US staff
• Built company objectives and culture through training
• Test trial in Finnish market with the outsourcing model
• Establish communication and structure
• Built brand recognition in Finland
• Built up a training center and establish own training programs for future managers involved in implementing the concept in Russia and the Baltic countries.
• Build long-term relationships and enhance efficient communication and collaboration with franchisees
• Guarantee effective customer service 24/7 and 365 days a year
35
Plan Year 2 - 4
• coordinate the single market entries• create new teams from intern sources as well as extern recruitment• shift pioneer Finnish teams to new markets to guide for built-up phase • enhance strong communication between country/regional level of all three
regions• establish a brand name in the Baltic-Russian region
Finland:• foster growth in Finnish market• smooth operating processes• create a lessons-learned guide
36
Plan Year 2 - 4 (continued)
Russia:• focus on the two big centers St. Petersburg and Moscow after a test case in a
smaller city in Russia outside a conurbation • establish swiftly a representation• expand the organizational structure with Russian Personnel trained in Finland
or in the Baltic's
Baltic:• get feet on big cities: Tallinn, Riga and Vilnius• follow a thoroughly planned entry strategy
37
Plan Year 5 - 10
• Improve on productivity• Total Quality Management• Redouble profit• Become large provider of hypermarket facilities• Human Resource Management forces exchange between regions• BP Centro will become the regional center of excellence within 5 years• First place on the satisfied customer list
38
Managers needed
First Year
Country Manager 1
(Finland)
Area Manager* 4
(HR, Finance, Marketing, Operation)
Regional Manager 2
(South and North Finland)
Facility Manager 4
(each Station)
Following Years (short time)
Country Manager 3
(Finland, Baltic, Russia)
Area Manager 4
(HR, Finance, Marketing, Operation)
Regional Manager >8
(South and North Finland, Estonia, Lithuania, Latvia, St. Petersburg Area, Moscow Area, Rest of Russia)
Facility Manager (at a rough guess) >20
(each Station)
* they are already exist in the Headquarter
Team 4
Job Description Senior Management
June, 2002
Director: Peter Ikhumhen
Manager: Alejandra Padilla
Lena Hoppe-Schumacher
Marko Sarstedt
40
Agenda
• Job Descriptions
CEO Baltics, Russia and Finland
VP Marketing
VP Human Resources
VP Finance
VP Operations
41
CEO Baltics, Russia and Finland
• Establish a relationship with private and public sector
organizations.
• Work closely with governments.
• Determine and formulate policies and business
strategies.
42
CEO Baltics, Russia and Finland
• Direct, and coordinate operational activities at the
highest level of management.
• Plan and implement future expansion.
• Have final decision power.
43
CEO Requirements
• Master’s. degree in field of business.
• 10 years of work experience (internationally).
• Speak a minimum of two languages fluently
(Russian, Estonian, Latvian, Lithuanian).
•Be able to make decisions.
44
Common Job Requirements
• Master’s degree.
• 5-10 years experience (Internationally).
• Strong analytical and leadership qualities.
• Managing skills.
• Languages and computer skills.
• Commitment to company.
45
VP Marketing
• Determine the demand for products and services.
• Develop pricing strategies.
• Oversee product development or monitor trends that indicate
the need for new products and services.
• Develop an overall marketing budget.
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VP Human Resources
• Programs on planning, staffing and recruiting.
• Motivation and development for mobility.
• Training modules.
• Market competitiveness.
• Develop an overall marketing budget.
• Advice and counsel workers.
47
VP Finance
• Provide operational and administrative direction.
• Ensure balance of company’s financial structure.
• Implement startegies to improve profitability.
• Responsible for legal issues.
• Report to CEO.
48
VP Operations
• Work closely with senior executives and regional managers.
• Responsible for flow of organization.
• Support and development of expansion across Finland and the Baltic
region.
• Achieve short and long-term strategic goals.
• Set perfomance goals to each division and monitor.
Team 5
Middle Management Job Descriptions
June, 2002
Jukka Kaitila
Peter Ikhumhen
Marc Hoppichler
50
Agenda
• Job Responsibilities / Requirements
• Job Design
• Change Management
51
Country Manager
JOB RESPONSIBILITIES
Reports to CEO
Supports, Monitors and Supervises Regional Level Managers
Accountable for the Country Budget
Country Level Policies and Strategies
Contacts with National Franchises
Contacts with the Government
Sets Standards of Quality Nationwide
JOB REQUIREMENTS / QUALIFICATIONS
Masters degree in Business / Marketing or Management
Sufficient working experience
Leadership skills
Ability to work under pressure
Ability to work flexible / extended working hours
Must be ready to move to another country
Fluent in Finnish, English and Russian
52
Regional Manager
JOB RESPONSIBILITIES
Reports to Country Manager
Responsible for site locations and openings
Supports, Monitors and Supervises Facility Managers within the region
Accountable for the regional budget
Looking for regional franchises
Associates with other Regional Managers
JOB REQUIREMENTS / QUALIFICATIONS
Bachelor (Master´s) degree in Management or equivalent
Some working experience
Knowledge of team motivation techniques
Preferably ready to move to another country
Excellent skills in Communication and Presentation
Fluent in Finnish, English, (Russian)
Job Responsibilities / Requirements
53
Facility Manager
JOB RESPONSIBILITIES
Reports to Regional Manager
Day-to-day Management
Local Outsourcing and Supervising
Looking for local companies and keeps contact with them
Monitors the site
JOB REQUIREMENTS / QUALIFICATIONS
Bachelor´s degree (equivalent)
Knowledge of the service industry
Ability to work individually
Local languages skills and basics in English
Highly flexible availability
54
Job Design
Functional Country Regional FacilityCEO Managers Managers Managers Managers
Enrichment N N Y Y YEnlargement N N Y Y NJob Rotation N N Y Y Y
Flextime Y Y Y Y YAlternative Work Schedule N Y N N N
55
Change Management needs to be an integrated part of the project right from the start to prepare the organization for this journey. Motivate & overcome barriers on all levels.
Planning/Adaptation
Preparation of Organization
Implementation ofmeasures
On-goingsupport
Time
Pro
du
ctiv
ity, M
ot i
vat i
on
Integration of Experts from USA
Permanent integration of CountryManagers
Workshops with all Managers from Finland
Communica-tion with NeighbourCountries
Tight collaborationwith key contactsfrom USA and UK
Headquarter CEO,VP
Build up acore concept for Russian and Baltic
Country visits reflecting all Managers concerned
• Decision on organizational change
• Preparation for change
• Communication of change
• Multiplication of Know-how
• Insure acceptance of organizational change
• HRM Concept
Team 6
Recruitment Methods
June, 2002
Kaitila Jukka
Leppänen Tuukka
57
LABOR MARKET
We know:
• positions to be filled
• qualifications required
We must answer the questions:
• where?
• how?
”Area from which applicants are to be recruited”
58
CEO
Internal resources
• HQ personnel (VPs)
• Job posting and bidding
• HRIS
External resources
• Globally as long as requirements met
• Executive Search Firms (head hunters)
59
VICE PRESIDENTS
Internal Resources
• Country level managers
• HQ personnel
• Job posting and bidding
• HRIS
External Resources
• Specialized private employment agencies
60
COUNTRY MANAGER
Internal Resources
• E.g. Regional managers
• Job posting and bidding
• HRIS
External Resources
• Executive search firms
61
AREA SPECIFIC MANAGERS
Internal Resources
• E.g. Regional managers
• Country HQ personnel
• Job posting and bidding
• HRIS
External Resources
• Specialized private employment agencies
62
REGIONAL MANAGER
Internal resources
• E.g. facility managers
• Job posting and bidding
External resources
• Advertisements
• Private / Public Employment Agencies
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FACILITY MANAGER
External Resources
• Advertisement
• Public Employment Agencies
• Educational Institutions
64
INTERNAL RECRUITMENT vs. EXTERNAL RECRUITMENT
• Capitalizing on employee investment
• Improving morale within organization
• Corporate philosophy already adapted
• Company blindness
• Greater pool of canditates
• Source of new ideas
• ”Been there”
• Increased dissatisfaction among existing employees
• Uncertainty increases
Advantages
Disadvantages
65
PROCESS
Recruitment process:
• beginning with the top management going down in hierarchy
• upper level management participates in the process of next level recruitment
• equal employment opportunity
Methods to lower recruiting costs:
• Internal recruiting
• Use of bulletin boards
• Realistic Job Previews (RJP)
• Centralized recruiting
66
INTERNSHIP PROGRAM
Requirements:–Highly motivated–Enthusiastic with new ideas–Interested in working for the company–Positive attitude and good with people
Positioning–assistants to middle-level managers–country HQ staff
67
FUTURE
Shift more from external to internal recruitment
• Employee referrals
• Posting and bidding
• Replacement charts
• Promotions
Team 7
Selection Techniques
Tuukka Leppänen
Miia Montonen
Tuulikki Pöllänen
69
Steps of Selection Process
Initial interview
Employment testing
Background investigation
Supervisory interview
Medical testing
Preliminary selection
Application Review
Hiring decision
70
Key Principles
• All steps of the process are carried out in the selection for every position
• Candidate can be rejected after each step
• Several steps oursourced to reduce personnel needs and expenses in HR department
71
The Process in Detail
• Application review• Pre-screening of applications
–Candidates are put in order of best qualified–Resume, cover letter, and BPOAmoco application forms
are used–Outsourced
72
The Process in Detail • Initial interview• Objective is to reduce the number of applicants and choose
from among those individuals who are qualified to continue in the selection process
–Highly structured Interview by HR department• Set of standardized questions based on job analysis• Situational, job knowledge, and worker requirements
questions• Established set of answers• Several interviewers• Documented
73
The Process in Detail
• The employment tests • Objective and standardized measure of a sample of behavior
that is used to gauge a person’s knowledge, skills, abilities and other characteristics in relation to other individuals
–Personality test (e.g.Myers-Briggs Type Indicator Test)–Outsourced
74
The Process in Detail
• Backround investigation• Purpose is to verify the honesty of the candidate and the
information provided
–Checking of• references • credit bureaus• school and college history• work history
–Outsourced
75
The Process in Detail
• Preliminary selection in the HR department–Applicants ranked by previous processes–Best candidates selected for the second round
• Supervisory interview• Focuses on actual work incidents in the interviewees past which provide
in depth information of applicants behavior relevant for the position applied–Panel interview
• Panel members: closest superior and consults from the HR department
–Behavioral description questions–Several interviewers to ensure multiple opinions
76
The Process in Detail
• Medical testing• To ensure that health of applicant adequate to job
requirements
–Drug testing
–Outsourced
• Hiring decision
–Done by the closest superior and consults from the HR department
77
Interviews
• All the questions are job related to avoid discrimination and gut feelings
• Sample interview questions:
–What special aspects of your education or training have prepared you for this job?
–What is your long-term career objective?–What kind of approach do you use when getting your
employees to accept your ideas?–Tell us about your experiences in leadership/teamwork
from your last job?
78
Steps Emphasized
CEO VP CM RM FMApplication review XInitial interview X XEmployment testing X XBackground investigation X XSupervisory interview X X XMedical testing X X X X X
79
Selection Schedule
Position Selection done by
CEO BPO Headquarters
VP CEO and Headquarters
CM & AM HR department of Headquarters
RM CM – team
FM CM - team
80
Validity and Reliability
• Selection process should provide as reliable information as possible about applicants so that their qualifications can be carefully matched to the job specifications
• Predictive validity-method–Involves testing applicants and obtaining data after those
applicants have on the job for some time period
• If problems rise in the performance measurement, the whole selection process should be revised
Team 8
Training
June, 2002
Pauliina Saresma
Cécile Rozuel
Christina Brehme
Emily Lim
82
Agenda
• Training Objectives
• Training Requirements
• Continuous Improvement
• Cultural Issue
• Training Policy
• Orientation Packet
• Training Needs per Level
83
Training Objectives
1. Build, develop and maintain a strong corporate culture (BP and BP Centro)
2. Develop loyalty to the organization through employee’s job satisfaction
3. Increase productivity and profitability
4. Manage career advancement and development
5. Ensure up-to-date KSAs to adapt to changing environments and increase flexibility
6. Create an organizational structure opened to changes, improvements and initiatives
84
Training Requirements
1. Be adapted to the needs of the organization (organization analysis)
2. Be adapted to the needs of employees (person analysis, HRIS)
3. Be cost-effective (training centers, videotapes and video-conferences)
4. Be integrated to the management process and objectives
5. Participate in shaping the career development / succession planning
6. Use efficiently the already-existing training programs and capabilities of BP
7. Be both external (consulting services outsourced) and internal (BP or BP Centro trainers)
85
Continuous improvement
• Enhanced communication between Managers
• Organize regular meetings with upper Managers and colleagues (i.e. Facility Managers meeting each month with their Regional Manager to share experience Cooperation)
• For all employees reinforce the concept of TQM via conferences and meetings
• Encourage feedback and employee initiatives at all levels
• Using IT as often as possible:- to facilitate access to updated data- to act proactively to changes saving costs
• Benchmarking and regular review of our current position on the market (TQM, market share, productivity, profitability…)
86
Cultural Issue
Stage 1: • Top Managers come from other BP international division (Country Managers)• In charge of recruiting and training their local subordinates (Regional Managers, Facility
Managers and their assistants)• Top Management training in the UK Headquarters• Middle-Management training at the Finnish/Baltic training center • On-the-job training in Finnish centers for Russian and Baltic employees (lateral promotion)
Stage 2:• Middle-Managers from Finland promoted to Top Management positions• Both external and internal Managers to implement expansion plans in Russia and the
Baltic countries• Top Management training in the UK Headquarters• Middle-Management training at the Finnish/Baltic or the Russian training center
87
Training Policy
• Preparation by BP Headquarters HR Managers (set guidelines for training)
• Coordination by HR Country Managers, with participation of Regional Managers:
- needs assessment - post-training evaluation
- instructional objectives - training schedule
- choice of training methods - integration to career development and succession planning
• Training Measurement:
- encourage feedbacks for future improvement
- evaluate the training program (transfer of training, results, learning)
- compare pre-training performance and expectations evaluation with post-training performance and appreciation evaluation (Expectations matched? Critics? Remarks for future improvement? )
88
Training Policy
• Favor on-the-job training methods to:- encourage active participation - maximize cost-efficiency- ease understanding
• For all employees:- orientation packet- a 2- 4 days compulsory training period on work time per year (TQM, General Management training programs, Communication Improvement programs,
Safety…)- 3 other possibilities per year to enroll in a training program (if required
compulsory training to gain specific skills)- possibility to take computers or languages courses at Open Universities on free time (fees paid by the company)
• For key individuals:- more specifically oriented training programs - lateral promotion - experience as assistant to key functions (« job rotation »)
89
Orientation Packet
• Purpose: facilitate integration, develop corporate identification and pride• For all employees when integrating BP Centro• Provided at the Finnish/Baltic training center (stage 1&2) or the Russian training center
(stage 2)• Set up by HR Managers from BP HQ and BP Centro Top Managers• Content:
- Presentation of the company (strategic goals, mission, culture, location)
- Presentation of the organizational structure (incl. Top Managers)
- Behavorial expectations
- Explanation of job duties
- Performance evaluation criteria
- General conditions of employment (EEO, hours, employee benefits)
- Safety regulations• New employees presented to their direct supervisor in smaller teams
90
Country Management Training Program
WHERE?WHERE?
Provided at the UK Headquarters
+ participation to international meetings when necessary
WHO?WHO?
- consulting firms
- experienced managers from BP, BP Centro US
- « professional » trainers (« gurus » i.e. Michael T. Bagley at Ingersoll-Rand)
WHAT?WHAT?
- enhance corporate culture
- ease information flow and communication (vertically, horizontally)
- enhance interpersonal skills
- train for crisis management and conflict resolution
- assess readiness for transition to Baltic countries and Russia (managing change)
HOW?HOW?
- coaching, mentoring, tutoring
- seminars and conferences (emphasis on concern for people)
- case studies (assistants managers)
- role playing (voluntary)
91
Regional Management Training Program
WHERE?WHERE?
Provided at the training centers
+ participation to meetings abroad when necessary
WHO?WHO?
- consulting firms (for key training programs)
- experienced managers from BP, BP Centro US
WHAT?WHAT?
- enhance corporate culture
- specify internal policies and procedures
- enhance interpersonal and communication skills
- build positive organizational atmosphere
- identify future top managers
- manage change
HOW?HOW?
- coaching, tutoring, mentoring
- staff meetings
- seminars and conferences (emphasis on concern for people)
- management games (if possible created for the company)
- role playing (voluntary)
- lateral transfer (assistant positions)
92
Facility Management Training Program
WHERE?WHERE?
Provided at the training centers
+ participation to meetings abroad when necessary
WHO?WHO?
- experienced managers from BP, BP Centro
- external professional trainers / experts
WHAT?WHAT?
- enhance corporate culture
- improve relations and communication with franchisees
- enhance quality control management
- develop / update technological skill
- develop leadership skills
- identify future top managers
HOW?HOW?
- computer-based training (CAI, CMI)
- audiovisual methods i.e. video-conferences (cost-efficient)
- management games (develop pride and loyalty)
- role playing (incl. lower-skilled jobs)
93
Facility Management Training Program
• Specific policies to:
- develop company’s attractiveness and popularity
- recruit and train young managers with potential for future top management
- reinforce the commitment to TQM
• We aim to develop:
- internship programs with Business Schools, Colleges and Universities in Finland, the Baltic countries and Russia to recruit students as Assistant to Facility Managers
- regular updating training program in computers, hygiene regulation, safety legislation, team management…
Team 9
Performance Appraisal
June, 2002
Director: Marko Sarstedt
Manager: Chong Sun Tan
Miia Montonen
95
Agenda
• Implementation – Who? – What frequency?• Sources of Appraisal.• Trait Approaches.• MBO.
96
Implementation of Performance Appraisal
CEO:
• Annually
MBO
Area-specific Officers:
• Annually
Self-Appraisal
MBO
Country and Regional Managers:
• Annually
Self-Appraisal
360° Appraisal
MBOFacility Managers:
• Annually
360° Appraisal
MBO
• Semi-Annually
Self-Appraisal
97
Sources of Appraisal: Self-Appraisal
• Employees evaluate themselves on a self-appraisal form.
• Performance interview to discuss job performance and agree on a
final appraisal.
Sample questions:
What were your most important accomplishments during the appraisal period?
What are you job-related goals for the next period?
How can the supervisor help you in meeting future goals?
98
Sources of Appraisal: 360° Appraisal
EvaluatedEmployee
PePeeerr
CustomerCustomer
SubordinateSubordinate
ProjectProjectleaderleader
SupervisorSupervisor
PeerPeer
SubordinateSubordinateSubordinateSubordinate
Performance feedback is received from a full circle of people
around the employee:
99
Pros / Cons of 360° Appraisal at BP-Centro
• More Comprehensive.
• Higher quality of information.
• Lessened bias / prejudice.
• Increased self-development.
• Administratively complex.
• Conflicting opinions, which may be accurate
from specific standpoints.
• Possible collusion.
• Appraisers may not be
accountable if evaluation
anonymous.-
+
-
100
Favorable Characteristics of 360° Appraisal
• Assure Anonymity
• Make respondents accountable
• Prevent collusion
• Use statistical procedures
• Identify biases
101
Trait Approaches
• Trait Approaches:
• Mixed-Standard Scale Method / Forced-Choice Method
• Not conform with Finnish culture
• Essay Method
• Time-consuming to use
• Costly
• Quality influenced by writing-skills of appraiser
• Subjective
• Graphic Rating Scale
• Less subjective bias
• Degree of performance dimension is less offensive
102
Example Graphic Rating Scale
C- Critically important
I – Important
N – Not appliable
E – Exceeds requirements
M – Meets requirements
O – Opportunity for development
Decision Making:
• Makes timely and effective decisions
• Considers broader impact of alternatives
• Delegates appropriately
C I N E M O
Communication:
• Listens well
• Communicates effectively
• Gives clear and concrete oral instructions
C I N E M O
103
MBO
Definition:
Philosophy of management on the basis of employee
achievement or goals set by mutual agreement of employees
and managers.
104
Pros / Cons of MBO at BP-Centro
• Less subjective bias
• Link individual performance to organizational
performance
• Mutual goal setting
• Basis for reward and promotion decisions
+
-• Time consuming
• Costly
• May encourage short-term perspective
• Goals not always easy to measure
105
MBO Scheme
Formulationof goals
Formulationof an
action plan
Final Review
InterimReview
Implementation
106
Formulation of goals
• Employee and supervisor decide mutually on expectations for the employee’s
performance:
• Define roles and accountabilities, including whether they are individual,
joint or team.
• Develop objectives that are closely tied to department goals
• Clarify performance dimensions
• Set interim review dates
• Agree on who will provide supplemental input
Questions to consider:
How can I improve my contribution to department goals?
What objectives will maximize my contribution?
Who can help me achieve my objectives? Whom do I interact with?
107
Definition of goals (cont.)
SpecificSpecific
Results-orientedResults-oriented
ChallengingChallenging
CommitmentCommitment
ParticipationParticipation
TaskTaskEffortEffort
TaskTaskPerformancePerformance
Characteristics of Effective Goal Setting:
Adapted from: Mcshane; Canadian Organizational
Behavior; 4th ed.; p # 79
108
Effective goal setting
High
Tas
k P
erfo
rman
ce
Low Moderate Challenging Impossible
Area ofOptimal
GoalDifficulty
Goal DifficultyAdapted from: Mcshane; Canadian Organizational
Behavior; 4th ed.; p # 80
109
MBO Example
Goal:
To deliver high standards of excellence in all services.
Objectives:
• To obtain a minimum score of 3.5 (out of 5) on all
Customer Service Evaluation forms.
Team 10
Compensation
June, 2002
Alejandra Padilla
Pauliina Saresma
Michael Sauer
Evelyn Wee
111
Compensation Objectives
1. Foster corporate culture
2. Lower employee turnover and improve productivity
3. Match employees’ future performance with organizational goals
4. Reward employees past performance
5. To remain competitive in the labour market
6. Employ and retain most talented people
7. Maintain salary equity among employees
112
Compensation Policies
1. Rate of pay is to be above or at the prevailing industry rate
2. Pay at the rate that is fair to both the employer and the employee
3. Pay raises according to MBO and merit
4. Offer sound non-financial compensation program
5. Offer incentives on the basis of individual contributions to organizational success
6. Equal opportunities for compensation at each level7. Pay expatriates according to their home country’s salary range8. Pay premium to expatriates to cover the host country’s cost of
living9. Equal Salary policy as long-term objective
113
Point System in Practise
Grade 1 Grade 2 Grade 3 Grade 4 Grade 5CE FaM RM CM CEO
SKILLScommunication 30 60 90 120 150interpersonal 30 60 90 120 150language 10 20 30 40 50computer 5 10 15 20 25leadership 25 50 75 100 125contract 5 10 15 20 25teamwork 20 40 60 80 100working experience 25 50 75 100 125education 25 50 75 100 125problem solving 20 40 60 80 100stress management 15 30 45 60 75
RESPONSIBILITIESresponsibility over the entity 30 60 90 120 150planning 20 40 60 80 100implementation 20 40 60 80 100decision making 25 50 75 100 125work of others 15 30 45 60 75dealing with limitations 10 20 30 40 50
JOB CONDITIONSmobility 30 60 90 120 150hazards 10 20 30 40 50
TOTAL 370 740 1110 1480 1850
114
Salary schedule
FINLAND in EuroGrade Minimum Midpoint Maximum
1 13,680 16,400 19,8502 23,269 30,971 35,1103 27,277 42,707 46,2954 32,940 48,569 61,4255 72,742 106,582 125,724
Latvia in Lats
Grade Minimum Midpoint Maximum1 3,100 3,720 4,4642 5,817 9,200 10,0133 8,333 13,047 14,1434 10,592 15,618 19,752
RUSSIA in RoublesGrade Minimum Midpoint Maximum
1 300 559 6602 512 790 9703 730 1,019 1,1564 929 1,369 1,732
based on the Economist salary comparison 2002
•Grade 1: Contract Employee
•Grade 2: Facility Managers
•Grade 3: Regional Managers
•Grade 4: Country Managers
•Grade 5: CEO
115
Compensation Policies - Model
CEO
COUNTRYMGR
REGIONALMGR
FACILITYMGR
BASE SALARY
MERIT BONUSES STOCK OPTIONS
INDIRECTCOMPENSATION
116
Factors Influencing Real Wage Rate - Finland
•Internal factors influencing wage rates: (what the job is worth)
-compensation policy (corporate)
-worth of a job
-employee relative worth
-employer ability to pay•External factors influencing wage rates: (compared to other employees)
-labor market conditions (unemployment rate)
-cost of living
-collective bargaining (powerful unions)
-government and legal requirements
117
Factors Influencing Real Wage Rate - Baltics and Russia
• government and legal regulations wage rates working time
• cost of living (eg:inflation rate)
• competitor compensation policies
118
Indirect Compensation: USA vs. Finland
USA:
•health: medical, dental, eye wear
•insurance: life, pension
•other benefits
Finland
•benefits; health, dental etc supported by government (taxes)
•pensions paid by government
•possible: housing, car, IT equipment, optional pension plan
119
Compensations at BP Centro (indirect)
CEO
COUNTRYMGR
REGIONALMGR
FACILITYMGR
COUNTRY CLUB
MEMBERSHIP
PENSION PLAN CHILD CARE COMPANY CAR
CAFETERIA PLAN
120
Compensations at BP Centro (non-financial)
• Food Service• Relocation Assistance• Special Achievement Awards
Country specifics• Leave space for flexible handling to Country specific HRM• Encourage different non-financial compensation• Provide some balance for very low wages in Russia / Baltics
121
End