BP-CENTRO CASE Final Presentation HSEBA Mikkeli 21. June 2001

BP-CENTRO CASE

Final Presentation

HSEBA Mikkeli 21. June 2001

Agenda

Team 1 Vision

Team 2 Organizational Structure

Team 3 Planning Needs

Team 4 Top-Management

Team 5 Middle-Management

Agenda

Team 6 Recruitment

Team 7 Selection

Team 8 Training

Team 9 Appraisal

Team 10 Compensation

BP-CENTRO-Finland

Objectives and Policies

Joanne Ooi Po Ean

Faradila Tokshim

Heidi Honkanen

TEAM 1

21 June 2001

Mission Statement S M A R T

Specific

Measurable

Actionable

Relevant

Time-based

21 June 2001

GoalsORGANISATIONAL GOALS:ORGANISATIONAL GOALS:

•Company's long term performance goals

•Manage globalization changes - proactive manner

•Commitment towards TQM

•Top shopping complex developer & operator

•Development of sufficient human capital

•Penetrate the new emerging markets

21 June 2001

Goals

CORPORATE CULTURE & IMAGE:CORPORATE CULTURE & IMAGE:

• Integrated common corporate culture

• BP’s brand name and products

SOCIAL RESPONSIBILITY:SOCIAL RESPONSIBILITY:

• Financial performance and value to shareholders

• Environmental aspects

21 June 2001

Principles & Values•Result of globalization:Result of globalization:

- high quality

- enhanced core competencies

- difficult to imitate by competitors

•Image and perception:Image and perception:

- standard image at all facilities

- customer friendly services

- top quality products

•Reliable employees:Reliable employees:

-homogeneous staff

-knowledge workers 21 June 2001

Code of Ethics

ethical behavior

competent performance

management excellence

innovative practice

equality of opportunity

social justice

unity of purpose

sustainable development

21 June 2001

PoliciesInternal PoliciesInternal Policies

- high standard of professional conduct

- commitment towards changes

- embrace new technology - HRIS

- comparable worth - prevent discrimination

ExternalExternal•Abide government regulations:

- Health Regulations and Rights

- Sexual harassment at workplace

- Uniform Guidelines on Employee Selection

- Taxation (Proliferation of new laws)

21 June 2001

Policies

Management StyleManagement Style• common management policies - applicable market wide

Cultural BiasesCultural Biases• official language - English • multi-linguist • multinational employees• recreational activities - develop harmony

21 June 2001

PoliciesEmployment and PromotionEmployment and Promotion

- practice of EEO and AA

- recruit from within

- job rotation

- internship programs

- outsource, below mid-management level

WagesWages• escalator clauses• pay grades• pay equity

21 June 2001

PoliciesCompensationCompensation

- expatriate incentives

- annual bonus

- workers compensation insurance

21 June 2001

Visions• headquarter to centralize:

- operation coordination

- direct communication

- foster corporate culture

• reduction in organizational layers

• strong multi-cultural HRM team

• work closely with:

- franchisees

- local business owners

21 June 2001

Visions

•Long-term focus in the Baltic, Russia and other Central Europe market:

- regional manager for each region

- country manager to supervise regional managers

- develop new contact and local networks regional transportation and distribution channels

•Respect local cultural differences

21 June 2001

Vision

• Focus on:

- customer loyalty

- brand recognition• effective marketing strategies • advanced technology • respond towards market• costs minimization

21 June 2001

Sin-Hwa Yoon Hanna Perälä

Johanna Hautala Tapio Pallasvirta

Human Resource Management

TEAM 2TEAM 2TEAM 2TEAM 2

• Matrix

• Teamwork Orientated

• Efficient and Proactive

• Importance of communication and

coordination between different levels

OrganizationOrganization

Human Resource Management

Human Resource Management

HQ

Finland,CEO

HQ

Finland,CEO

HQ UK

CM FINLAND

CM RUSSIA

INTERFACERMRM

FaMFaM

A.FaMA.FaM

CM BALTICS

OPERATING OPERATING FMFM

FINANCE FMFINANCE FMHRM FMHRM FM

MARKETING MARKETING

FMFM

• Importance of openness, communication,

coordination

• Distribution of responsibility

• Flexible organization

• Build management potential

• Consistent with policies and objectives

Human Resource Management

Structure AnalysisStructure Analysis

Board of DirectorsBoard of Directors

Human Resource Management

• Report to the BP UK headquarters

• Members

• Tasks : Directs, supervises, generally advises and takes care of the relations

• CEO also runs the operations, i.e. communicates with Country Managers and with Functional Managers

• Members : CEO, Functional Managers and

Country Managers

• Tasks : To set overall strategy, visions and values

• Cross-functional operations

Human Resource Management

Top-Management TeamTop-Management Team

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER

Organizational RelationshipsOrganizational Relationships

Human Resource Management

COUNTRY MANAGER

COUNTRY MANAGER

CEOCEO

REGIONAL MANAGER

REGIONAL MANAGER

FACILITY MANAGER

FACILITY MANAGER

ASSISTANTFACILITY MANAGER

ASSISTANTFACILITY MANAGER

CEOCEO

Human Resource Management

• Reports to the HQ UK and to the

Board

• Communicates with Functional

Managers & Country Managers

• In charge of the countries’ operations

and functions

FUNCTIONAL MANAGERSFUNCTIONAL MANAGERS

Human Resource Management

• Report to CEO• Cooperate with the Country Managers and

Regional Managers• Managers in four fields of business:

1) Operating (Purchase & Logistics)2) Finance3) HRM4) Marketing

• Controlling of outsourced logistics

• Import Activities

• Purchasing Domestic Products

PURCHASE & LOGISTICS FMPURCHASE & LOGISTICS FM

Human Resource Management

• Budgeting

• Financial Reporting

• Planning

• Taxation and foreign exchange

• Accounting information systems

FINANCE FMFINANCE FM

Human Resource Management

HUMAN RESOURCE FMHUMAN RESOURCE FM

Human Resource Management

Employee

Development

Employee

Development

Compensation

&Employee Benefits

Compensation

&Employee Benefits

Human resources planning

Human resources planning

RecruitmentRecruitment

Labor relations

planning

Labor relations

planning HRM

• Creating the overall marketing policy

• Giving support in local marketing efforts

• Consistency in marketing

• Responsible for PR and advertising

• Participating in franchisee training

MARKETING FMMARKETING FM

Human Resource Management

• Report to CEO

• Communicate with Functional Managers, Regional Managers

• Every country has its own

• Responsible for the operations in the country, such as outsourced activities.

COUNTRY MANAGERSCOUNTRY MANAGERS

Human Resource Management

REGIONAL MANAGERSREGIONAL MANAGERS

Human Resource Management

• Report to Country Managers

• Work closely with the franchisees

• Supervise and control Facility Managers

• Responsible for openings and site locations

• Implement local level marketing strategies

• Report to Regional Managers

• Day-to-day management

• Responsible for the complex as a whole

• Training employees

FACILITY MANAGERSFACILITY MANAGERS

Human Resource Management

• Report to the Facility Manager

• Assist the actual Facility Manager

• Maintenance of buildings

ASSISTANT FACILITY MANAGERS

ASSISTANT FACILITY MANAGERS

Human Resource Management

Planning Needs TeamTeam 3

Anna Suominen

Jenni Jokela

Wolf-Marten Borgmann

Key jobs

CEO

• In charge of Finland, Russia and Baltic

• Controls the whole operation

• Reports to HQ in UK

• Operates in Helsinki, Finland

Key jobs

Functional managers

• 4 managers: marketing, finance, HRM, and operating

• Report to CEO in Finland

Key jobs

Country managers

• There are three country managers

• Report to CEO in Finland

Human Resource Descriptions

Regional managers

• Responsible for openings and site locations

• Implement local level marketing strategies

• Supervise facility managers

• Report to the country manager

Human Resource Descriptions

Facility Manager/Assistant Facility Manager

• Day-to-day management

• Facility specific marketing and promoting

• Report to the regional manager

Outsourcing

• All functions below the middle-management

• p.ex.: cleaning, security, maintenance

no job description

Promotion

• Employees are mainly promoted within the company

• Facility managers Regional managers

• Regional manager Country manager

• Eventually send abroad

Entry Level Jobs

• BP Centro hires principally educated and/or experienced professionals

• Entry level employees could be:

- Assistant facility managers

- Middle management trainees

• Former interns

Job Analysis Planning

• Improve organizational performance and productivity

• Several options: - functional job analysis

- critical incident approach

- position analysis questionnaire system

- job analysis in changing environment

Job Analysis Planning

Recommendation:

Job Analysis in Changing Environment

- fast-moving, global environment

- Russia and Baltic are developing markets

- emphasis placed on successful performers rather than standard jobs and workers

• Launching operation throughout Finland• Opening 5 facilities• Management training in the UK and locally• Expansion to Russia and Baltic States • Marketing Dpt. Implements general marketing strategies

Plan: year 1Plan: year 1

Plan: years 2-4Plan: years 2-4

• Within 3 years all facilities in Finland are open• Baltic starting with Estonia in year 3• Russia starting in year 3 Regional Man.: 6• Domestic growth, gain market share• Implement FJA, future personnel needs• Additional recruiting with expansion• Management training for Baltic and Russia staff

Plan: years 5+Plan: years 5+

• Expansion in Latvia and Lithuania • Expansion to Central Eastern Europe?• HQ in Finland the center of all new markets• Regional managers in Russia: 16

Year 1 Year 2-4 Year 5

Finland 5+15=20 20+60=80 80

Russia ----- 34+102=136 68+204=272

Baltic ----- 3+9=12 10+30=40

Total: 20 228 392

Facility Managers and Assistants needed

Year 1 Year 2-4 Year 5

CEO 1 1 1

Functional Man. 4 4 4

Country Man. 3 3 3

Regional Man. 3 12 22

Facility Man. 20 228 392

Total: 31 248 422

Managers needed

Top ManagementJob Descriptions

JOB ANALYST TEAM:

Anders Thomas

Ria Vatanen

Karoliina Ijäs

Common Requirements (1/3)

•Master’s degree

•5-10 years work experience

•Capable to analyze a set of complex circumstances

•alternatives

•plan of action

Common Requirements (2/3)

•Precise analytical and strong leadership qualities

•Ability to express ideas clearly

•Excellent managing skills

Common Requirements (3/3)

• Languages

• Excellent computer skills

• Broad knowledge of host markets

• Commitment to BP Centro

CEO (1/2)

Overall responsibilityWork closely with:

Other department managers Federal Government bodies Franchisees : “The Mc Donald's”

Hold final decision power

CEO (2/2)

Company representative

Plan and implement future expansion

Providing vision and strategy

VP of Finance (1/2)

• Job Statement:

– Establishes and maintains BP Centro’s financial policies and procedures

– Provides operational and administrative direction

– Ensures soundness of company financial structure

– Manages company relationships

– Reports to the CEO

VP of Finance (2/2)

• Essential Functions:

– Analyzes operating results vs. plans and objectives

– Provides financial operating reports

– Provides procedures and systems

– Custodian of funds, securities and assets

– Conduit of information

VP of Operations (1/2)

• Job Statement:

– Provides strategic and operational direction

– Assists CEO in establishing strategic objectives

– Evaluates results

– Establishes and coordinates responsibilities

– Reports to CEO

VP of Operations (2/2)

• Essential Functions:

– Advises the CEO on strategic business development

– Develops division strategy and organization

– Encourages managers to evaluate and take actions

– Sets performance goals to each division

– Monitors division performance vs. performance goals

– Leads program

VP of Marketing (1/2)

• Annual marketing plan

• Long term marketing strategy

• Overall marketing budget

• New sponsorships

• Execute the advertising strategy

VP of Marketing (2/2)

• Select media

• Product improvements

• Analyze and forecast sales

• Coordinate duties

VP of Human Resources (1/2)

• Strong, effective and respected HR organization

• Programs on staffing, recruiting, compensation and development

• Promote and strengthen the core-values of the company

VP of Human Resources (2/2)

• Market competitiveness

• Training modules

• Employee morale programs and events

• Delegate tasks to HR personnel

MID-MANAGEMENT JOBS

Team 5Heidi Idman

Laura Orenius

Johanna Saarinen

Ethiopia Segaro

Amanda de Wolfe

Organization StructureMiddle Management

CMFinland

RegionalManagers

Facility

managers

CMRussia

CMBaltics

RegionalManagers

RegionalManagers

Facility

managers

Facility

managers

Ass. Fac.

managers

Ass. Fac.

managers

Ass. Fac.managers

InternshipPrograms

Country Manager Responsibilities

Co-operates with the VPs Defines the “big picture” of the countrySupervises Regional ManagersManages the country budgetOversees quality of overall service

Country ManagerQualification

Master’s degree (equivalent)Experience of 8+ years Excellent leadership skillsExcellent communication skills local

language plus EnglishAbility to work under pressureExcellent computer skills

Regional ManagerResponsibilities

Supervises Facility ManagersManages the regional budgetResponsible for the regional

developments/activitiesPerforms related duties assigned by the

Country ManagerMakes contracts with franchisees

Regional ManagerQualification

Bachelor’s degree (equivalent) Experience of 5+ years Excellent leadership skills Excellent contract management Good communication and interpersonal

skills Language skills: local language plus English Good computer skills

Facility ManagerResponsibilities

Reports to the regional managerSupervises Assistant Facility ManagersTrains employees constantlySupervises the quality of workResponsible for the facility

• Manages day to day operations

Facility ManagerResponsibilities

• Oversee the activities of Maintenance team

• Ensures that all work tasks are performed efficiently

• Ensures the smooth flow of work in the facility

• Flexible and ready to adapt to changes

• Able to lead and motivate employees

Facility ManagerQualification

Bachelor’s degree (equivalent)Experience 3+ years Intiative person and a good team

playerExcellent communication skillsStrong leadership skills with the ability

to demonstrate promotability

Assistant Facility ManagerResponsibilities

• Partcipates in decision making

• Performs related duties assigned by the Facility Manager

• In charge of the facility’s needs

Assistant Facility ManagerQualification

Polythecnic: Degree (equivalent)

Availability 24/7

Prior work experience in the service sector preferred

Internship Programs

• Requirements:– Highly motivated– Enthusiastic with new ideas– Interested in working for the company– Positive attitude and good with people

Job Design

Job Enlargement:Giving more responsibilitiesNew tasks that require trainingAssigning specific tasks

Job Design

Job Enrichment:Monetary compensationPossibility for trainingPossibility to travel and relocate

Job Design

Upward Communication system Job rotationAdjustments in workschedules (flex-

time, 4day work week, job sharing)Employee Involvement Group

Team 6

• Aura Marttinen

• Philipp Messmann

• Elina Haverinen

• Mikko Penttinen

• Heta Ryynänen

What is Recruitment?Finding the best Individual for an open job!

• Who is our human capital ?

• Where can we locate it?

Internal: Locating from within the company

External: Locating from outside the company

Labor MarketThe area from which applicants are to be recruited.

For BPC that means:

• Finland

• Russia

• The Baltics (Estonia,Lithuania,Latvia)

CEOHow: Internally

Chosen from and by the Executive Board of Directors

Why: International Work Experience Within the Company

Thorough Connaissence of the Company

Knowledge of Company’s Culture and Core Competencies

Prior experience of the company’s policies abroad

When: Year 1

Functional Managers (VPs)How: Internally and Externally

Efficiently searched by Executive Search Firms (‘Headhunters’)

Why: Difficult to find qualified applicants only internally

Experience/knowledge from the company preferred

Experience in the functional field (HRM, Finance, Marketing, and Operations)

When: Year 1 Finland

Years 2 to 4 Russia and Baltics

Country ManagersHow: Internally and Externally

Efficiently searched by Executive Search Firms (‘Headhunters’)

Why: Difficult to find qualified applicants only internally

Experience/knowledge from the company preferred

When: Year 1 Finland

Years 2 to 4 Russia and Baltics

Regional ManagersHow: Internally and Externally

Local Newspaper Advertisements,

Online (Intranet and Internet) Job Advertisements

Why: Familiarity with local policies, culture, and language

When: Year 1 Finland

Years 2 to 4 Russia and Baltics

Facility ManagersHow: Internally and Externally

Local Newspaper Advertisements,

Online (Intranet and Internet) Job Advertisements,

Public Employment Agencies, Universities

Why: Familiarity with local policies, culture, and language

Previous work experience preferred

When: Year 1 Finland

Years 2 to 4 Russia and Baltics

F a c i l i t y M a n a g e r

I n s h o r t , B P i s e n e r g y m a d e e a s y . B y A p r i l 2 0 0 1 B P ’ s r e v e n u e s a r e $ 1 4 8 b i l l i o n a n dt h e n u m b e r o f e m p l o y e e s i s 1 0 7 , 0 0 0 . B P A m o c o 1 9 9 8 R e s e r v e s w e r e 1 5 . 2 b i l l i o nb a r r e l s o f o i l a n d g a s e q u i v a l e n t ( 5 0 % o i l , 5 0 % g a s ) . D a i l y p r o d u c t i o n i s 1 . 9 m i l l i o nb a r r e l s o f c r u d e o i l a n d D a i l y s a l e s 5 . 5 m i l l i o n b a r r e l s o f r e f i n e d p r o d u c t s . B P h a s2 9 , 0 0 0 s e r v i c e s t a t i o n s ( U S A 1 7 , 3 0 0 , R e s t o f W o r l d 1 1 , 7 0 0 ) a n d p r o d u c t i o n a c t i v i t i e si n 2 3 c o u n t r i e s .

W e a r e l o o k i n g f o r a d y n a m i c i n d i v i d u a l w i t h s t r o n g a n a l y t i c a l s k i l l s a n d a p r o v e nt r a c k r e c o r d o f s u c c e s s . A r e y o u a n a t u r a l l e a d e r a n d e x c e p t i o n a l i n e v e r y w a y ? W ew a n t t o h e a r f r o m y o u !

B r i e f J o b D e s c r i p t i o n

T h e r e s p o n s i b i l i t i e s o f t h i s p e r s o n w i l l i n c l u d e r e p o r t i n g t o t h e d i s t r i c t m a n a g e r a n ds u p e r v i s i n g a s s i s t a n t f a c i l i t y m a n a g e r s . T h e s e l e c t e d c a n d i d a t e w i l l b e r e s p o n s i b l e f o rt h e f a c i l i t y a n d m a n a g i n g d a y t o d a y o p e r a t i o n s , w h i l e t r a i n i n g e m p l o y e e s c o n s t a n t l y .I n a d d i t i o n , t h e p e r s o n w i l l o v e r s e e t h e a c t i v i t i e s o f t h e M a i n t e n a n c e T e a m .

Q u a l i f i c a t i o n s :

M u s t h a v e t h e f o l l o w i n g : a b a c h e l o r ’ s d e g r e e o r e q u i v a l e n t a n d 3 o r m o r e y e a r s w o r ke x p e r i e n c e . M u s t b e a n i n i t i a t i v e p e r s o n a n d a g o o d t e a m p l a y e r . G o o dc o m m u n i c a t i o n a n d i n t e r p e r s o n a l s k i l l s s t r o n g l y p r e f e r r e d . S t r o n g l e a d e r s h i p s k i l l sw i t h t h e a b i l i t y t o d e m o n s t r a t e r e q u i r e d s k i l l s f i r m l y p r e f e r r e d .

P l e a s e s u b m i t a r e s u m e a s a w o r d a t t a c h e d d o c u m e n t t o B l a k e E d w a r d s a n d i n c l u d es a l a r y e x p e c t a t i o n s . A s e p a r a t e e m a i l w i t h a w o r d o r t e x t a t t a c h m e n t i s p r e f e r r e d .T h a n k y o u !

F o r f u r t h e r i n f o r m a t i o n , c o n t a c t :B l a k e E d w a r d sH u m a n R e s o u r c e M a n a g e rT e l e p h o n e : + 4 5 4 6 7 8 9 0 4 5 2 8 0L a k e w o o d D r i v eL o n d o n , E n g l a n d4 w x 3 3

S e n d y o u r a p p l i c a t i o n s w i t h y o u r r e s u m e t o t h e a d d r e s s a b o v e o r a p p l y o n l i n e .

A d d i o t i o n a l I n f o r m a t i o n P o s i t i o n T y p e : F u l l t i m e

Assistant Facility ManagersHow: Internally and Externally

Local Newspaper Advertisements,

Online (Intranet and Internet) Job Advertisements

Public Employment Agencies, Universities, Polytechnics

Why: Familiarity with local policies, culture, and language,

Previous work experience not mandatory

When: Year 1 Finland

Years 2 to 4 Russia and Baltics

Internship Programs and Job Rotation

3 month Internship programs in every new region for middle-level management

Job rotation executed in a form of semi-annual two week exchange periods in another region/country in a similar position

Correlation

Very poor CEO

CM/FuM

Job Title:Availability:

Poor

Fair

Good

Very good

RM

FaM

AFM

Future Outlook

Shift more from external to internal recruitment

• Employee referrals

• Posting and bidding

• Replacement charts

• Promotions

Team 7

Marjaana Kivioja

Marcos Räisänen

Satu Seppä

Tiina Timonen

Rami Virtanen

Qualifications

• CEO

– leadership, strategy, knowledge about the company, communication, teamwork, analytical and language skills

• Functional Managers

– communication, interpersonal and functional planning skills (HRM, Finance, Marketing, and Operations), ability to work under pressure

Qualifications

• Country Managers– familiarity with local policies, culture,

and language, communication, interpersonal skills

• Regional Managers– familiarity with local policies, culture,

and language, communication, interpersonal skills

Qualifications

• Facility Manager– individual and team work abilities, organizing

and leadership skills, communication

• Assistant Facility Managers– readiness to learn, motivation, team working

ability

Selection process

Initial interview in HR Dep.

Employment tests

Background investigation

Supervisory interview

Medical examination

Preliminary selection in HR Dep.

Application Review

Hiring decisionNB: an applicant may be rejected after any step in the process

Selection Process

Application Review

Application Review

• Review of applications and resumes

• Put candidates in order of best qualified

• Select the most appropriate applicants

Selection Process

Application Review

Initial interview in HR department

Initial interview in HR Department

• Highly Structured Interview– Questions Based on Job Requirements – Distinct Types of Questions – Sample Good Responses– Multiple Raters– Consistency Applied– Documentation– “Fostered by EEO Requirements”

Types of Interview Questions

WARM-UP QUESTIONS e.g .What made you apply for this position?WORK HISTORY e.g. What special aspects of your work experience have prepared you for this job?JOB PERFORMANCE e.g. Everyone has strengths & weaknesses as workers. What are your strong points for this job? EDUCATION e.g. What special aspects of your education or training have prepared you for this job?CAREER GOALS e.g. What is your long-term employment or career objective?SELF-ASSESSMENT e.g. What kind of things do you feel most confident in doing?MOTIVATION e.g. What is your professional goal?WORK STANDARDS e.g. What are your standards of success in your job?LEADERSHIP e.g. What approach do you take in getting your people to accept your ideas or department goals?

Selection Process

Application Review

Initial interview in HR Dep.

Employment tests

Employment tests

• Perform psychological and honesty tests

• Teamwork ability tests

• Good predictor of job performance

Selection Process

Application Review

Initial interview in HR Dep.

Employment tests

Background investigation

Background investigation

• Check references and work history • Good citizen (criminal record)• Reliability of applicant• Information will be obtained from:

– former employers– school, college, university officials– credit bureaus– individuals named as references

Selection Process

Application Review

Initial interview in HR Dep.

Employment tests

Background investigation

Preliminary selection in HR Dep.

Preliminary Selection in HR Dep.

• Ranking of applicants based on previous processes

• Select the best candidates for “second” round

Selection process

Application Review

Initial interview in HR Dep.

Employment tests

Background investigation

Preliminary selection in HR Dep.

Supervisory interview

Supervisory Interview

• In depth panel interview, behavioral type questions (conducted by closest supervisor, consultant and representative of HR department )

• Multiple opinions

• In depth knowledge about applicants behavior and decision making capabilities

Selection Process

Application Review

Initial interview in HR Dep.

Employment tests

Background investigation

Preliminary selection in HR Dep.

Supervisory interview

Medical examination

Medical examination

• Given to ensure that the health of an applicant is adequate to meet the job requirements

• Test held by professional medical institution

• Protection against possible later law suits

• Can be costly

Selection Process

Initial interview in HR Dep.

Employment tests

Background investigation

Supervisory interview

Medical examination

Preliminary selection in HR Dep.

Application Review

Hiring decision

Hiring Decision

• Goal of the whole application process (most important step)

• Final decision based on all steps of the selection process

Selection Process Tasks: Functional, Country and Regional Managers

Positions

Outsourced

Outsourced

Outsourced

Outsourced

Outsourced

HQ

Outsourced

HQ

Application Screening

Initial Interview

Employment Tests

Background Investigation

Preliminary Selection

Supervisory Interview

Medical Examination

Hiring Decision

Selection Process Tasks

• CEO– elected by Executive Board of Directors

• Facility and Assistant Facility Managers– conducted by closest supervisor and

representative of HR department

Cost

• Partnership with global consulting agency

• Outsourcing selection process reduces personnel needs and expenses in HR department

• Selection methods are designed to reflect the importance of specific position

• Opportunity Cost

Validity and Reliability

• The combination of the different steps in the selection process will assure that each applicant’s characteristics are correctly evaluated

• Reliability– More than one interviewer at supervisory

interview– Standardization e.g. BP employment test

Training and Career Development

Marjo MetsäläRobert PablyJenni Helppi

Hanna Välisalo

Training Layers

• Top management (CEO, VPs, CM)• Regional Managers• Facility Managers• Assistant Facility Managers• Internship Program• Management Trainee Program

Orientation

• Orientation is for all employees– Orientation packet

• Top Management in UK• Lower layers in Helsinki

Top Management - CEO

• Objectives– Create Corporate

Culture, Internalizing Policies and Procedures

– Create Effective Internal Relationships

• Methods– Staff Meetings

– Seminars and Conferences in UK/USA

– Mentoring/ Coaching

Top Management - FuM, CM

• Objectives– Create Corporate

Culture, internalizing policies and procedures

– To develop• communication skills

• interpersonal skills

• functional skills

• Methods– Staff Meeting

– Seminars and Conferences in UK/USA

– Mentoring/Coaching

– Lateral Transfer

– Management Games

– Case Studies

– Behavior Modeling

– Role Play

Regional Manager

• Objectives– Create Corporate

Culture, Internalizing policies and procedures

– Create positive Working Environment

– To develop • Good Communication

Skills• Good interpersonal

skills

• Methods– Job Rotation

– Staff Meetings

– Lateral Transfer

– Mentoring/Coaching

– Case Studies

– Behavior Modeling

– Role Play

– Benchmarking

– Voluntary Courses

Facility Managers• Objectives

– Create Corporate Culture

– Franchisee relations

– To develop• Communication skills

• Leadership skills

• Organizational skills

• Stress Management

• Methods– Job Rotation

– Staff Meetings

– Lateral Transfer

– Mentoring/Coaching

– Case Studies

– Behavior Modeling

– Computer-assisted instruction

– Voluntary courses

– Role Play

Assistant Facility Managers

• Objectives– Create Corporate

Culture, Internalizing Policies and Procedures

– To Develop• Team Work

• Quality Control

• Communication skills

• Methods– Job Rotation

– Lateral Transfer

– Mentoring/Coaching

– Behavior Modeling

– Computer-Assisted instruction

– Voluntary Courses

– Role Play

Internships

• Objectives– To create a

recruitment pool for future employees

– Familiarize future employees with the Corporation Culture

• Methods– On the Job Training

– Mentoring/Coaching

Management Trainee Programs

• Objectives:– Develop

management abilities and knowledge in Practice

• Methods– Job Rotation

– Case-Studies

– In-Class training

– Mentoring/Coaching

Training MethodsCEO FuM CM RM FaM AFM INT MT

Orientation "Kick-off" X X X X X X X X

"Follow-up" X X X X X X X X

On the job Job rotation X X X X

Seminars andConferences X X X

Staff meeting X X X X X

Lateral transfer X X X X X

Mentoring/Coaching X X X X X X X X

Off the job Case studies X X X X X X

Behavior modeling X X X X X

Role play X X X X X X X

Managementgames X X

Voluntary education X X X

Training Schedule

Baltics and Russia

• Orientation – Top Management to UK– Lower layers trained locally

• Training Process – Same as in Finland

Performance AppraisalTeam 9

Niina Saarinen

Helen Jiang

Miia Wahlroos

Laura Malin

Administrative Purposes

• Compensation• HR functions: promotion, transfer,

layoff• HR planning• “Paper trail”• Influences employee behavior

=> improves organizational performance

Developmental Purposes

• Individual development – Feedback and discussions– Possibility to improve job performance,

not only evaluate past

• Eliminate problems

• New goals

• Training needs

Cultural Characteristics

• Appraisal - an unfamiliar concept– Traditionally only hard facts measured– Qualitative sides neglected

• Finns tend to be discrete – Avoid negative feedback– Seldom discuss personal traits

• Russians and Baltics are different from Finns

Rating Methods

• Results Method– Management by objectives (MBO)

• Behavioral Method– Behavioral observation scales (BOS)

Sample Items

• General skills• Management/Leadership skills

Management Skills Actual Requested by position Comments

5 4 3 2 1 5 4 3 2 1 ________-Planning ________-Organization ________-People development ________-Decision making ________-Control ________

Ranking A B C D E

Training of Appraisers

• Explain the objectives• Define the standards• Avoid misunderstanding• Reduce biases• Using the form

– Scales and rankings– Comments serve as references for

interview

CEO Appraisal

• Annually– Self-appraisal– HQ– Functional managers– Country managers

• Semi-annually– MBO

Requirements

• Co-operation

• Objectives easily quantifiable

• The employees can control the process and outcome

• Consistent goals

• Review times specified

MBO Advantages

• Mutual goal setting

• Reward and promotion decisions

• Objectives defined

• Performance improved

• Co-operation improved

MBO Disadvantages

• Time consuming

• Costly

• Some goals difficult to measure

• Hard to get full commitment

Functional and Country Managers

• Annually– Self-appraisal – 360-degree appraisal

• Semi-annually– MBO

Regional, Facility and Assistant Facility Managers

• Annually– Self-appraisal – 360-degree appraisal

360-Degree Advantages

• Comprehensive system

• Quality of information

• Lessens bias/prejudice

• Complements TQM

• Increases employee self-development

360-Degree Disadvantages

• Administratively complex

• Feedback can be intimidating

• Conflicting opinions

• Invalid evaluations

To Ensure Quality and Acceptance

• Assure anonymity

• Use statistical procedures

• Identify and quantity biases

• Make respondents accountable

• Prevent “gaming” of the system

=> Training

Appraisal Interview

• Data analyzing– HR department

• Face to face conversations– Feedback– Training needs

TEAM 10

Presented by•Satu Strömberg

•Maria Rintala

•Laura Hirvonen

COMPENSATION POLICIES• Competitive base salaries• Bonus system 1: MBO

– CEO– Country Managers– Functional Managers

• Bonus system 2: Other bonuses– Regional Managers– Facility Managers– Assistant Facility Managers

COMPENSATION POLICIES(Cont.)

• Indirect Compensation

• Open Pay Policy

• Non Financial Compensation

FINNISH REGULATIONS•Equal rights law

•No legislated minimum wage (Työsopimuslaki 17 §)

•Right for paid vacation or for vacation compensation

•Parents and family take-off

• Regulated working hours

- overtime agreed with employee

- working hours not subject to business hours

POINT SYSTEM Grade 1 Grade 2 Grade 3 Grade 5AFM FaM RM FuM CM CEO

SKILLScommunication 30 60 90 120 120 150interpersonal 30 60 90 120 120 150language 10 20 30 40 40 50computer 5 10 15 20 20 25leadership 25 50 75 100 100 125contract 5 10 15 20 20 25teamwork 20 40 60 80 80 100working experience 25 50 75 100 100 125education 25 50 75 100 100 125problem solving 20 40 60 80 80 100stress management 15 30 45 60 60 75

RESPONSIBILITIESresponsibility over the entity 30 60 90 120 120 150planning 20 40 60 80 80 100implementation 20 40 60 80 80 100decision making 25 50 75 100 100 125work of others 15 30 45 60 60 75dealing with limitations 10 20 30 40 40 50

JOB CONDITIONSmobility 30 60 90 120 120 150hazards 10 20 30 40 40 50

TOTAL 370 740 1110 1480 1480 1850

Grade 4

RATE STRUCTUREFinland

05000

1000015000200002500030000

1 2 3 4 5

Pay Grade

Wag

e R

ate

Russia

0

500

1000

1500

2000

2500

1 2 3 4

Pay Grade

Wag

e R

ate

Baltic

0

1000

2000

3000

4000

5000

1 2 3 4

Pay Grade

Wag

e R

ate

SALARY RANGES monthly

FIMFINLAND Grade Minimum Midpoint Maximum

1 9 500 11 400 13 6802 12 500 15 000 18 0003 14 500 17 400 20 8804 18 200 22 200 26 6405 27 000 32 400 38 880

Internships 4 800 5 760 6 912Mngt Trainee 9 500 11 400 13 680

BALTIC

Grade Minimum Midpoint Maximum1 2 500 3 000 3 6002 3 100 3 720 4 4643 3 596 4 316 5 1804 4 514 5 417 6 500

Internships 1 200 1 440 1 728Mngt Trainee 2 500 3 000 3 600

RUSSIA

Grade Minimum Midpoint Maximum

1 1 250 1 500 1 8002 1 550 1 860 2 2323 1 800 2 150 2 5904 2 250 2 700 3 250

Internships 600 720 864Mngt Trainee 1 250 1 500 1 800

EXPATRIATES

• Expats are paid according to their home country’s salary range

• Premium paid to cover the host country’s cost of living

BENEFITS

• Flexible benefits package

• Management option program for CEO

CORE BENEFITS

• Apartment guaranteed

• Health care

• Day care

• Cellular phone

• Recreational facilities

• Meal ticket

ADDITIONAL BENEFITS IN FINLAND

• Company car or company bicycle

• Fitness benefits

• Discount on goods and services– purchased from the complex

ADDITIONAL BENEFITS IN RUSSIA AND BALTIC

• Education for children

• Additional health services

• Fitness benefits

• Discount on goods and services– purchased from complex

Have a nice summer-break !!!&

bye, bye, Randy :-)))

HRM class 2001