Amrit Tandon GHRM

8/7/2019 Amrit Tandon GHRM

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INTRODUCTION ABOUT THE COUNTRY

ECONOMY:

Spain's accession to the European Community--now European Union (EU)--in January 1986 required the

country to open its economy to trade and investment, modernize its industrial base, improveinfrastructure, and revise economic legislation to conform to EU guidelines.

These measures helped the economy grow rapidly over the next two decades. Unemployment fell from

23% in 1986 to a low point of 8% in mid-2007. The adoption of the euro in 2002 greatly reduced interest

rates, spurring a housing boom that further fueled growth. The strong euro also encouraged Spanish firms

to invest in the United States, where several Spanish firms have significant investments in banking,

insurance, wind and solar power, biofuels, road construction, food, and other sectors. The end of the

housing boom in 2007 and the international financial crisis led to a recession that began in the second

quarter of 2008. Housing sales and construction declined dramatically, and the unemployment rate was

more than 20% in the first quarter of 2010, the second-highest in the European Union after Latvia.

The Spanish economy grew by 0.1% in the first quarter of 2010, the first positive growth in 2 years. This

is mostly attributed to an increase of public demand, while private demand dropped. The GDP growth for

all of 2010 is predicted to be slightly negative. The budget deficit has been growing rapidly since the

Zapatero government introduced high spending on public works and unemployment benefits to combat

the recession, though the debt-to-GDP ratio is low due to a surplus maintained several years before 2008.

Market uncertainty and pressure from the EU, IMF, and U.S. led the Zapatero government to introduce

austerity reforms in May 2010 that reduced government employees' salaries, froze pension funds, and

suspended public works. This legislation is designed to reduce the deficit to 7% of GDP in 2011, and

Spain has pledged to reduce it to below 3% by 2013. In mid-June, the government issued a decree

implementing labor market reform to reduce rigidity in hiring and firing workers. Due largely to

outstanding bad loans to the construction sector, Spanish regional saving banks (cajas) have been

undergoing a series of mergers to increase liquidity and put the sector on a sound footing.

y GDP (2009): $1.461 trillion (1.051 trillion); seventh-largest economy in the Organization for

Economic Cooperation and Development (OECD).

y Per capita GDP (2009): $31,700 (22,800).

y GDP annual growth rate (2009): -3.6%.

y Natural resources: Coal, lignite, iron ore, uranium, mercury, pyrites, fluorspar, gypsum, zinc,

lead, tungsten, copper, kaolin, hydroelectric power.

y Agriculture and fisheries (2.3% of GDP, 2009): Products--grains, vegetables, citrus and

deciduous fruits, wine, olives and olive oil, sunflowers, livestock and poultry, dairy products,

seafood.

y Industry (11.7% of GDP, 2009): Types--processed foods, textiles, footwear, petrochemicals,

steel, automobiles, consumer goods, electronics.

y Services (2009): 51.5% of GDP.


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y Trade (2009): Exports--$220 billion (158 billion): automobiles, fruits, minerals, metals,

clothing, footwear, textiles. Major markets--EU 69%, U.S. 4%. Imports--$290 billion

(208 billion): petroleum, oilseeds, aircraft, grains, chemicals, machinery, transportation

equipment, fish, consumer goods. Major sources--EU 58%, U.S. 4%.

y Average exchange rate (2009): 1 euro=U.S. $1.39.

Important Cities

y Madrid is the capital of Spain. Barcelona is the largest commercial center and touristdestination. Other important cities in Spain include Valencia, La Corua, Sevilla, Malaga,Granada, Ibiza, Palma de Mallorca and Santa Cruz.

Economic Sectors (CRUX)

y Spain has been progressing economically since the Spanish Civil War in 1939 when its

economy was devastated. Today, tourism, industry and agriculture play a major role inthe countrys economy. Spain has seen the fastest economic development in WesternEurope since the 1960s.

y Tourism has played a major role since the 1960s and in the last 40 years, tourism hasbeen the fastest growing economic sector of the countrys GDP, helping to accelerategrowth overall. Millions of visitors flock to Spain and contribute almost $50 billion USDto Spains economy each year.

y Agriculture contributes less than 5% of the nations GDP, which is high compared toother countries in Western Europe. Fishing is another important economic sector forSpain.

y Industry contributes about 35% of Spains GDP, but industry is still somewhat dependent

on foreign investment. The most common products from this sector are motor vehicles,steel, textiles, chemicals and ships.

THE HR PERSPECTIVE OF SPAIN ECONOMY:

Spain's unemployment rate has hit 20% for the first time in nearly 13 years, official figures have

shown. There were 4,612,700 people unemployed in the country at the end of March, the

national statistics agency INE said. Spain's jobless rate has risen sharply during the economic

downturn and is the highest in the eurozone. Meanwhile, official European Union (EU) figures

showed that the eurozone unemployment rate remained unchanged at 10% in March. This

equates to 15.8m people. Among the wider EU, the jobless rate was 9.6%, with 23.1m people

unemployed. Germany was the only country where the jobless rate fell, from 7.4% to 7.3%. The

EU's statistics agency Eurostat calculates its unemployment figures on a slightly different basis

to the INE. The agency also said it expects eurozone inflation to be 1.5% in April, up from from

1.4% in March.


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THE ABOVE REPORT WAS PUBLISHED BY BBC NEWS ON 30TH

APRIL 2010.

SPAIN POLITICAL ANALYSIS

For the year 2008, Spain scored -0.03 for the factor "Political Stability" in the World Bank's

Governance Indicators, 1996-2008 as compiled by Kaufmann, Kraay, and Mastruzzi. The

governance estimates are normally distributed with a mean of zero, and a higher score signifies a

less violent and politically more stable society.

Spain is a constitutional monarchy. The President of the Government (Prime Minister) is

nominated by the King but must be approved by the Congress of Deputies, which is

democratically elected. The bicameral Parliament, or Cortes, consists of the Senate and the

Congress of Deputies. According to the U.S. Department of State's (DoC) 2009 Background

Notes political violence is largely centered on two sources: Basque separatism and radical

Islamic terrorism. Both the U.S. DoC and the U.S. Department of Commerce's 2010 Country

Commercial Guide (CCG) report that the longest-running source of violence in Spain has been

the government's campaign against the Basque independence movement known by the acronym

ETA and founded in 1959. The ETA has used and continues to use terrorist tactics to further itscause. According to the CCG, "in early 2010 the ETA publicly reaffirmed its commitment to

continue to commit violent acts." Spain was also the target of a major Islamic terrorist attack in

2004. The current president, Jose Luis Rodriguez Zapatero, was re-elected to a second term of

office in March 2008 and has pursued an aggressive anti-terrorist policy. The country has been a

member of the North Atlantic Treaty Organization since 1982 and has been a major participant

in multilateral international security activities.


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Spain is a monarchy, which was restored after the death of dictator General Franco in 1975. The

present monarch, King Juan Carlos I, is the last monarch in Europe to hold absolute power

(which he inherited from Franco) and arguably the only European monarch to voluntarily cede

that power.

Following Data regarding the political outlook would contribute to any MNC work practice andstrategies operating in Spain.

Spain's foreign investment legislation permits foreign investors to own 100 percent of equity in

most sectors, and permits the free movement of capital. Spain liberalized its foreign investment

legislation to open up sectors such as telecom and energy, which has increased the countrys

inward investment level. Spain has high tax rates, with a top income tax rate of 43 percent, and a

top corporate tax rate of 30 percent. Property rights are protected under Spanish law, and

enforced at both the administrative and judicial levels, and although protection is effective, the

system is slow. Intellectual property rights are recognized and protected as well, offering

protections that meet or exceed those established under European Union standards. Headed byJose Luis Rodriguez Zapatero, the centre-left Spanish Socialist Workers' Party also won the

elections in March 2008, and while not considered as business-friendly as the Popular Party

government, the Socialist Party nonetheless follows a pro-globalization course. Spains

corruption level is of no concern as reflected in the countrys high ranking in the Transparency

International's 2009 Corruption Perception Index.

SPAIN DEMOGRAPHICS

Population: 46,505,963 (July 2010 est.)

Age structure

0-14 years: 14.5% (male 3,021,822/female 2,842,597)

15-64 years: 67.4% (male 13,705,107/female 13,601,399)

65 years and over: 18.1% (male 3,071,394/female 4,282,683) (2010 est.)

Median age- Total: 40.1 years

Male: 38.9 years

Female: 41.5 years (2010 est.)


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Population growth rate is 0.493% (2010 est.) while Birth rate: 10.91 births/1,000 population

(2010 est.)

and Death rate: 8.72 deaths/1,000 population (July 2010 est.) Net migration rate: 2.73

migrant(s)/1,000 population (2010 est.)

Urbanization- urban population: 77% of total population (2008) and the Rate of urbanization:

0.9% annual rate of change (2005-10 est.)

Sex ratio-

At birth: 1.065 male(s)/female

Under 15 years: 1.06 male(s)/female

15-64 years: 1.01 male(s)/female

65 years and over: 0.72 male(s)/female

Total population: 0.96 male(s)/female (2010 est.)

Infant mortality rate

Total: 3.42 deaths/1,000 live births

Male: 3.77 deaths/1,000 live births

Female: 3.04 deaths/1,000 live births (2010 est.)

Life expectancy at birth

Total population: 81.07 years

Male: 78.06 years

Female: 84.27 years (2010 est.)

Total fertility rate

1.47 children born/woman (2010 est.)

Ethnic groups

Composite of Mediterranean and Nordic types


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Religions

Roman Catholic 94%, other 6%

Languages

Castilian Spanish (official) 74%, Catalan 17%, Galician 7%, Basque 2%, are official regionally

Literacy

Definition: age 15 and over can read and write

Total population: 97.9%

Male: 98.7%

Female: 97.2% (2003 est.)

School life expectancy (primary to tertiary education)

total: 16 years

male: 16 years

female: 17 years (2008)

Education expenditures

4.4% of GDP (2007)

The second largest city in Spain, Barcelona numbers around 230,942 immigrants, many of them from

Spain's former possessions in Latin America, particularly Ecuador, Argentina and Colombia. There are

large numbers of Moroccan, Pakistani and Eastern European immigrants, especially from Romania and

the Ukraine.

CULTURAL ANALYSIS- SPAIN

Spanish is the only official language of Spain, though some of the 'autonomous communities'

have other official languages.

The majority of Spaniards are Catholic, though Spain is a secular state. For over 300 years, most

of Spain was Muslim. Parts of Spain were under Muslim rule until 1492 when the last Moorish

king fell (in Granada).


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In theory, nudity is legal anywhere in Spain.

Despite the beret being associated with France, the Basques in north-east Spain invented the

beret. The Spanish also eat a lot of snails. Only the French eat frogs' legs, though!

The Catalonian regional parliament has passed a motion showing its desire to ban bullfightingin the region. Bullfighting support in Spain in general is falling.

Flamenco is not just a dance, but an art form that includes guitar, singing, dancing and 'palmas'

(handclaps).

Spain are the current Basketball World Champions, European soccer champs and have won the

Tour de France for three years in a row. Fernando Alonso, winner of the 2005 and 2006 Formula

One World Championships, is Spanish too.

Same-sex marriage is legal in Spain.

LEADING MULTINATIONAL CORPORATIONS OF SPAIN:

Spain Forbes companies

Name of the company Industry Type

Banco Santander Banking

BBVA-Banco Bilbao Vizcaya Banking

Telefnica Telecommunications services

Repsol-YPF Oil & gas operations

Endesa Group Utilities

Iberdrola Utilities

Banco Popular Espaol Banking

ACS Group Construction

Grupo Ferrovial Construction

Cepsa Oil & gas operations

Gas Natural SDG Utilities

Altadis Food, drink & tobacco

Unin Fenosa Utilities

Inditex Household & personal products

FCC Group Construction


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Banco de Sabadell Banking

Sacyr Vallehermoso Construction

Corporation Mapfre Insurance

Acciona Construction

Abertis Transportation

Bankinter Banking

Iberia Transportation

Metrovacesa Diversified financials

Banco Pastor Banking

Acerinox Materials

Banco de Valencia Banking

Gamesa Capital goods

Red Elctrica de Espaa Utilities

Enagas Oil & gas operations

THE 3 COMPANIES OF SPAIN THAT HAD COME UNDER THE

WORLDS MOST ADMIRED COMPANIES IN THE MAGAZINE

FORTUNE 07 WERE:

Company City Overall score

Telefonica Madrid 6.40

ACS Madrid 5.86

Repsol YPF Madrid 4.75

From the March 19, 2007 issue

As Spain's top companies and corporations out of the FORBES 500 list are:

1. Telefnica de Espaa

Spain's Telecom operator, the Telefnica Corporation is Spain's biggest employer, with morethan 95,000 people on the pay roll, and had the largest net profit. When it was privatized, theformer telephone monopoly went through a process of expansion, both geographically (with asignificant presence in Latin America) and in diversification into other media and the Internet,


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especially under its controversial chairman Juan Villalonga, appointed in 1996. Villalonga wasforced to resign in 2000. The current president of Telefnica is CsarAlierta.

2. Grupo Santander

The Group Santander integrates to numerous banks and businesses not only in Spain, but also inPortugal and with a strong presence in south America. Among its banks we may find, theSantander Central Hispano Bank, Banesto, the Bank of Venezuela, Ro de Plata Bank, etc. It isthe first financial company of Spain and the second of the euro zone. The 68% of its employeeswork out side of Spain.

3. Repsol YPF

It is the mayor spanish petrol and gas company and of gas , with international presence in 28

countries and leader in Spain and Argentina. Its production is of 1,1 million barrels a day ofpetrol and its reserves overpasses the 5.400 million barrels, located in Latin America and in theNorth ofAfrica.

4. Iberdrola

Spain's biggest utilities company. In October 2000, the Iberdrola corporation anounced a mergerwith Endesa (ranked 6) to form the third largest electricity conglomerate in the world, and thefirst in terms of number of clients, with nearly 37 million users and a strong presence in LatinAmerica, but restrictions imposed by the Spanish government caused the two companies to back

out of the deal.

5. BBVA

Spanish bank with strong precence in foreing countries.

6. Endesa

Spain's second largest electricity company.

7. El Corte Ingls

Its name translating as "the English cut" (meaning English style), Spain's biggest chain ofdepartment stores was founded in 1940 by Ramn Areces, who had a Madrid tailor shop onMadrid's Calle Preciados. In 1995 it bought out its only serious competitor, Galerias Preciados.


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8. Seat

SEAT stands for "Sociedad Espaola de Automviles de Turismo". Spain's first big carmanufacturer was founded in 1950, and under the Franco regime produced the endearing little

Seat 600, based on a Fiat model. Some called it the "bellybutton", because everybody had one.Since 1986 Seat has been part of the Volkwagen group, and its economy model Ibiza is the best-sellling car in Spain.

9. Fasa Renault

The Spanish branch of the French auto manufacturer.

10.

Opel

Spain's third largest car manufacturer.

OUT OF ALL THESE, ACCORDING TO A DATA PUBLISHED IN 2007, FOURSPANISHBRANDSTHATWERERANKEDAMONGTHETOP100BRANDSINTHEWORLDWERE

SANTANDER,BBVA,MOVISTARandZARA.

Santander is the first Spanish brand in the classification, ranked at number 38 10 places higherthan last year and BBVA boasts one of the most important rises of the brands in the study,moving from number 77 up to number 55. Both also rank among the Top 10 in the world in thefinancial sector.

For its part, Movistar also recorded significant growth, ranking number 62 in the table fromnumber 88 the previous year as did Zara, which went from 84 to 76, to be ranked as the thirdglobal brand in the fashion sector, being singled out in the report for its capacity to adapt to thenew situation.

A brief about IHRM Policies followed by MNCs in Spain.

In 40 percent of cases, there is a common, worldwide HR philosophy that applies to operations inall of the countries where a company is active.

However, common HR policies are lesser developed in Spanish MNCs, where only around halfhave a committee responsible for harmonizing the HR policies of their subsidiaries, comparedwith 83 percent of U.S. MNCs that do, and an average of 63 percent for all the companiessurveyed.


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Spanish MNCs exercise greater control over operations outside Spain than inside the country, inareas such as executive compensation packages, executive career paths, overall labor costs, staffsize, and employee attitude and satisfaction. The areas in which there is the least control areabsenteeism and workplace productivity.

MNCs operating in Spain both foreign and Spanish pay above the going rate for executives

and key groups.

In nearly all cases, salaries for executives and the rest of the staff are based, first and foremost,on variable bonuses and, secondly, salary incentives based on shares in the company, profit-sharing and stock options. These three things are used more frequently in subsidiaries of U.S.MNCs.

MNCs operating in Spain invest 2.2 percent of their payroll in training and career development,less than half the European average of 4.5 percent.

Around 72 percent of the foreign MNCs operating in Spain encourage the training of executives

and key groups, compared with 59 percent of Spanish MNCs, where promotions are mainlybased on seniority.

More than 70 percent of all companies surveyed engage in systems to communicate withemployees and get them participating in the firm. This rate is highest among foreign firms (79percent), especially U.S. ones, and lower among Spanish firms (67 percent). It is also morefrequent in manufacturing firms, and in ones with more diversified interests.

The most well-established practices to retain employees are to facilitate work/home lifeconciliation, followed by career development and leadership training programs aimed atfostering a diverse staff. Quota policies are the least favored, with many reporting badexperiences.

The Value of Diversity

Companies that implement diversity management policies in Spain believe in themwholeheartedly and consider them to be a source of competitive advantage. They cite morecreativity, adaptivity to change and better problem solving.

Executives of foreign MNCs in Spain indicate they are able to use a lot of their own discretionand autonomy in implementing such policies. This gives them greater latitude to adapt to thespecific socio-cultural circumstances of a given country. Spanish MNCs, on the other hand, takea more ethnocentric position than others with respect to their overseas operations.

In this, size was a factor. Larger companies of more than 5,000 employees tend to centralize theirdiversity management policies, while those of between 1,000 and 5,000 employees give theirsubsidiaries greater leeway.


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As a matter of research, I look forth the IHRM practices followed in one of the fourcompanies i.e., Satander.

SANTANDER

The Santander Group is the fourth largest bank in the world by profits and eighth by stock market

capitalisation. In 2009, its net ordinary profits were over EUR 8.9 billion, 1% more than the previous

year, and it distributed more than EUR 4.9 billion in dividends to shareholders. With these figures, the

Group achieved the target set at theAnnual General Meeting of Shareholders held on June 19th 2009 to

maintain its profits and the dividend payout.

Grupo Santander consists of 131,819 employees, 90.1 million customers, 11,178 branches and2.27 million shareholders. Retail banking - the main aspect of Santander's operations - generates

82% of the group's profit.

HR and IHRM practices followed at Santander

Application process:

Your application process will begin online with a quick questionnaire designed to check your eligibility to work in theUK, followed by an application form.

The recruitment process

Online Scenario Questions

Online Application


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Telephone Interview

Short-listing

Offer

Start Date

BENEFITS AND COMPENSATION

Their benefits could include any of the following:

y 25 days paid holiday

y Access to company Pension arrangements

y Discounted health arrangements

y Discounted retail and childcare vouchers

y Access to Sharesave and Partnership Share Schemes

y Special rates and discounts on Santander UK financial products

y Access to an exclusive online retail discount site.

However, working for an organisation like this isn't all about salary benefits. At Santander, theyalso believe in investing in the health and wellbeing of our employees. That's why they aredelighted to offer the following benefits and services:


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Information and advice

Their dedicated wellbeing intranet provides a range of information to help employees protect andpromote their general health and wellbeing.

Santander UK gyms

They have well-equipped gyms in three main office sites, and for staff based in other sitesthey've negotiated discounted rates with a number of national health clubs.

Work-related stress support

Modern life can be stressful, making it important to know how to manage the everyday pressuresof work effectively. So they provide support and guidance for staff and line managers onmanaging and preventing work-related stress.

Employee assistance

They offer a comprehensive EmployeeA

ssistance Programme that gives staff and members oftheir immediate family access to professional, independent and confidential support on a widerange of issues, including serious health problems, bereavement and trauma.

Flexible work options

They are committed to supporting individuals in achieving a reasonable balance between theirhome and working life. To support staff in meeting their commitments outside of work, theyoffer a range of flexible work options, including part-time working, job sharing, career breaksand flexible holiday options.

Learning and Development

Learning at Santander works as a partnership and underpins our approach to PerformanceDevelopment. Developing your skills and knowledge is going to be critical to your success, andfrom our part, they'll make sure you have the chance to learn the things you need to know foryour job and to look after our customers. That might mean attending a course, using an onlinepackage or being coached by an experienced member of staff.

Managing a diverse work force at Santander:

In order to manage our more than 170,000 employees in over 40 countries, the corporate strategyin human resources has four main objectives:

Generate and develop, from a corporate standpoint, executives trained to tackle the challengesof the future.

Consolidate Santander as a reference employer in order to attract and keep the best talentinternationally.


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Make the corporate culture endure and transmit the strategic knowledge characteristic ofSantander throughout the whole Group.

Have ordered processes for managing talent.

Corporate talent management policies

There are five corporate policies:

1. SegmentationSantander segments its employees into four groups: top executives (responsible for the focus andstrategic definition), senior executives (responsible for implementing the strategy), otherexecutives and the rest of employees. This segmentation, conceived in order to respond toemployees different needs, puts the emphasis on the talent within the Group. In each segment,high potential professionals are identified and specific programmes provided to accelerate theircareer development.

2. Selection and marketing of human resourcesSantander has common policies and criteria for attracting and selecting people which are appliedthroughout the Group. These guidelines are set out in the corporate policy. During 2008, 19,978people joined the Group.Santander communicates its value offer as a company and solidarity leader which recognises theachievements of its employees and strives to foster knowledge, training and career development,in an environment that foments international projection and work and life balance.

Link between universities and employment in the Bank One of the Banks priorities is toconsolidate internships as one of the main sources of recruitment. During 2008, 3,858 students

were employed for a time in the countries where the Bank is present. This links the professionalexperience of these people with the Groups employment opportunities. As part of this effort, theEmpieza a lo Grande programme selects 350 high potential students in the last year of theirdegree or postgraduate study and organises a period of paid work experience so that some ofthem can join the Bank. In 2008, 70% of the selected students were hired.

3. Training and knowledgeIn 2008, Santander invested EUR 76.5 million in training. More than 81.5% of employeesreceived training (an average of 41 hours per person). A total of 5.4 million hours were investedin training.

The El Solaruco Executive Training and Development Centre, located at the headquarters, is areference point for developing knowledge, exchanging best practices and fomenting thecorporate culture. In 2008, 73,511 employees attended the Centre, 23,218 of them in trainingprogrammes. Corporate training embraces knowledge of a strategic nature and is structured inthree centres: The corporate schools of knowledge develop advanced technical programmes to supportbusiness objectives. The corporate school of risks, for example, provided some 28,000 hours oftraining in 2008 to almost 2,000 employees from 17 countries.


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The corporate centre of integration designs and manages the reception given to new employees(courses on Santanders history, values, strategy, business model and work culture). More than2,000 new employees completed this programme in 2008.

The executive development centre plans the training activities for the main executives (7,000participants from 17 countries in 2008). Santander Learning was launched in 2008, a corporateplatform for managing training which is gradually being implemented in the Bank, and a specifictraining plan for new executives.

4. Career development and mobilitySantander foments the development of new opportunities for its employees so that they have agradually continuous career path through various means: Access to posts of responsibility. Mobility to new functions. Exchange of best practices.

Coaching. Corporate or local development programmes deigned toaccelerate the careers of high potential employees. Training in business skills and human resourcesmanagement.

Ideas for leading: cycle of conference, given by well known people from the corporate,scientific, artistic and cultural worlds, who share their experiences. Five conferences were givenin 2008 and attended by 4,600 employees. The Development and Mobility Committee studies thedevelopment possibilities of top and senior executives and proposes, case by case, the specificformulas for their career development.

Main development programmesSTEP Santander Training Executive Programme

Aimed at professionals with growth potential in the Group. Participants receive over the courseof three years a detailed training programme and are assigned to positions in, at least, twocountries.

Corporate Leadership Programme (CLP)

Designed for high potential executives to develop specific skills in management and strategicmanagement.

Social Responsibility Programme for a Global GroupAimed at executives in order to increase their global view of the Group and of its businesses viabetter knowledge of the realities of the countries where Santander is present. The programmefollows a methodology based on practical knowledge of societies, economic and social agent andSantanders social responsibility activities in each country. The third edition of the programmewas held in the UK, with 29 participants from seven countries.


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Other programmes to support future executives

There are other initiatives at local and division levels, focused on developing high potentialemployees such as the APOLO Programme, the New Talent programmes and Future Executivesof the Latin America Division or retail banking in Spain.

Ideas for leading: cycle of conference, given by well known people from the corporate,scientific, artistic and cultural worlds, who share their experiences. Five conferences were givenin 2008 and attended by 4,600 employees. The Development and Mobility Committee studies thedevelopment possibilities of top and senior executives and proposes, case by case, the specificformulas for their career development.

Executive Development ProgrammeLeading the Groups growthHigh Return LeadershipDealing with Strategic Leadership Challenges

Corporate Programme of Strategic Support for Senior ExecutivesRole of Leader in Management of Change and ConflictsCorporate Leadership Programme (CLP)STEP SanTander Executive Training ProgrammeProgramme of Social Responsibility for a Global GroupCorporate Managerial CurriculumFemale Executives ChallengeWorkshop for graduatesIdeas for Leading (Cycle of Conferences)

Other development programmesProgramme for Future Executives in the AmericasApolo ProgrammeHigher Programme of Executive DevelopmentHuman Resources Curriculum PlanEnhancing TalentTraining Programmes

5. Assessment and remuneration

Employees are assessed once a year. On the basis of their achievements, a remuneration packageis set which takes into account the function carried out, the level of responsibility, the marketreferences and the Banks results. Employees are assessed through a transparent and confidentialprocess. In Spain, 98% of employees are on permanent contracts and most people joiningSantander are hired on this basis. Santanders remuneration includes variable and fixed payelements and various benefits that also cover the employees family, depending in the countrywhere the person is working. The Shareholders Meeting in 2008 approved a new long-termincentives plan. One of the main objectives is to align employees interests with those ofshareholders.


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CONCLUSION

A total of 126,875 employees received training during 2008 and around 100,000 participated inprocesses to assess potential and identify talent (24,305 people were promoted). Employees

come from many countries and the Group fosters equality and no discrimination, key elements incompetitiveness and leadership. Santander ensures that all employees regardless of sex, capacity,age, nationality, origin and religion can develop their full potential and help achieve the Banksobjectives.

They're governed by the Financial Services and Markets Act, so they need to know the laws andhow to work within them. For some jobs, such as those that involve giving advice on certainproducts, some types of training are mandatory and people have to take tests to prove they knowtheir stuff. They're serious about getting it right, so we need people who'll take learningseriously. They provide an excellent rewards package to all their employees, including a highly

competitive salary and a comprehensive range of benefits. The banking giant, which has recently

integrated withA

bbey,A

lliance & Leicester and Bradford & Bingley, now employs 24,000 staff in the UK,60 per cent of whom are women.

REFERENCE:

y http://www.bbc.co.uk/news/10093123

y http://www.google.com/publicdata?ds=z9a8a3sje0h8ii_&met=unemployment_rate&idim=eu_c

ountry:ES&dl=en&hl=en&q=unemployment+spain

y http://www.estandardsforum.org/spain/business-indicators?id=166

y http://www.indexmundi.com/spain/demographics_profile.html

y http://www.hotelsclick.com/hotels/Spain/BCN/Barcelona-DEMOGRAPHICS-1.html

y http://gospain.about.com/od/factsaboutspain/qt/culture_facts.htm

y http://www.economywatch.com/companies/forbes-list/spain.html

y http://www.cnnmoneycontrol.com/magazines/fortune/globalmostadmired/2007/countries/Spa

in.html

y http://www.spainview.com/topbiz.html

y http://www.brandsofspain.com/news/558/

y http://www.santander.com/csgs/Satellite?canal=CAccionistas&cid=1148925257148&empr=SAN

Corporativo&leng=en_GB&pagename=SANCorporativo/Page/SC_ContenedorGeneral

y http://www.ieseinsight.com/doc.aspx?id=1111&ar=20

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Amrit Tandon GHRM