”BP-CENTRO” – FINLAND
CASE
Human Resource
Management Plan
June, 2003
AGENDA

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



Introduction
BP-Centro Background
HRM Plan Areas (1 - 5)
Break
(15 Min.)
HRM Plan Areas (6 - 10)
Conclusion
COMPANY OVERVIEW


Experienced great growth in the US and globally
Delivers services and products such as:
–
–
–
–
–



Gasoline, oil and services
Food products and services
Grocery products
General merchandise and service establishments
Entertainment
Does not own companies, but leases facilities
Builds relationship on a long-term basis
Petroleum and auto-related products must be
purchased from BP
HRM PLAN AREAS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Objectives and Policies
Organization Structure
Requirements Planning
Job Description - Management
Job Description – Operations
Recruitment Methods
Selection Report
Training
Performance Appraisal
Compensation and Benefits
HRM PLAN AREAS
1. Objectives and Policies
2.
3.
4.
5.
6.
7.
8.
9.
10.
Organization Structure
Requirements Planning
Job Description - Management
Job Description – Operations
Recruitment Methods
Selection Report
Training
Performance Appraisal
Compensation and Benefits
AGENDA

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Mission Statement
Values and Ethics
Economic Goals
Governments
Long Term Organizational Objectives
Short Term Organizational Goals
Attitude Toward Change
Policies
MISSION STATEMENT

We are commited to our customers in terms
of providing them with high quality products
and services 24 hours a day, 7 days a week,
365 days a year.

We are involved in the real estate business
and it is our goal to develop a concept of
shopping complex through Europe.
VALUES AND ETHICS






Respect for Human Rights,
Protection of the natural environment,
Fairness and honesty in human
relationships,
High quality standards,
Customer and employee satisfaction,
Develop a strong brand image.
MAIN ECONOMIC GOALS

Serve the emerging markets
–
Penetrate into the European market

Create brand awareness

Gain market share
GOVERNMENTS
•
•
•
Ensure good relationship
-local
-national
Fulfill
-work legislation
-legal requirement
Political environment
-fair
-direct
LONG TERM ORGANIZATIONAL
OBJECTIVES
•
•
•
•
•
Promote BP Centro corporate culture
In 5 years time
-over 150 facility managers.
BP – regional center of excellence
Training centers in Finland
Future managers
SHORT TERM ORGANIZATIONAL
GOALS (1)
•
•
•
•
•
Develop concept of world wide
Act local
Official language
- English
Fight discrimination
Build a strong corporate culture
-Build relationships
-Efficient communication
-Collaboration with franchisees
SHORT TERM ORGANIZATIONAL
GOALS (2)
•
•
•
•
Encourage communication among district
managers team
Customer service
24/7
365 days
ATTITUDE TOWARD CHANGE

To set up the company’s reputation, need for
some stability and landmarks,

Be on the edge of change in terms of quality
management,

Adopt a proactive attitude toward change on
a long term view.
POLICIES (1):
ACCOUNTABILITY TO STAKEHOLDERS

Relationship management
–

coordinating with stakeholders to avoid prejudicial
activities to environment and the community
Impact assessment
–
to evaluate the consequences of business
activities on people (proactive approach)
POLICIES (2):
RELATIONSHIPS 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
POLICIES (3):
INTERNAL STRUCTURE

Favor constant tapping of upcoming
technology to:
–
–


minimize labor cost
develop a HRIS to enhance communication and
improve efficiency of information sharing
Build a team-oriented organization and
participative environment
Outsourcing when feasible
POLICIES (4):
MONITORING, CONTROLLING

Measure results regularly against set goals
and re-evaluate goals if necessary

Regular benchmarking for continuous
improvement

Encourage structured feedbacks

Organize internal auditing
BRIEF SUMMARY

Emphasize on corporate culture

Build excellence using edge-cutting
technology and state-of-the-art HRM
methods

Adapt to the needs and environment
HRM PLAN AREAS
1. Objectives and Policies
2. Organization Structure
3.
4.
5.
6.
7.
8.
9.
10.
Requirements Planning
Job Description - Management
Job Description – Operations
Recruitment Methods
Selection Report
Training
Performance Appraisal
Compensation and Benefits
AGENDA

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
Organizational Chart
Organizational Reporting Relationships
Headquarters in Finland
Key Functions of Each Department
Country Managers
Regional Managers
Facility Managers
Assistant Facility Managers
Brief Summary
ORGANIZATIONAL CHART
ORGANIZATIONAL REPORTING
RELATIONSHIPS





Assistant Facility Manager works in co-operation
with Facility Manager
Every Facility Manager reports to their own Regional
Manager
Regional Manager has a reporting responsibility to
their Country Manager
Country Managers work in close contact with the
management team
CEO at Finnish headquarters reports directly to the
headquarters in UK
HEADQUARTERS IN FINLAND



Why Finland?
CEO’ s responsibilities in Finland
Headquarter’s tasks:
- overall responsibility
- general advises and rules
- supervises the country managers
FINNISH HEADQUARTERS

MARKETING
- general marketing strategy
- develops marketing budget with Finance
department
- find the location in co-operation with CM
and RM
FINNISH HEADQUARTERS

HRM
- selects experienced, flexible managers with
the hiring managers
- training and development
- developing Human Capital
FINNISH HEADQUARTERS

FINANCE
- financial & investment planning
- accounting information systems
- taxation & foreign exchange
- guide & supervise financial actions
- reports to UK headquarters monthly
FINNISH HEADQUARTERS

OPERATIONS
- helps managers to make outsourcing contracts
- warehousing, transportation
- new facility development
- acquisition of new sites
COUNTRY MANAGER

Located in every country

Responsible for the operations in the specific
country

Makes suggestions and advises

Specifies the marketing strategy
REGIONAL MANAGER
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Responsible for their own regions & the coordination
of their activities
Interacts with each other & as a team
- uniformity of centers
Supervisors 3-5 centers
New location proposals
Co-operation with country managers
- instructions & feedback
FACILITY MANAGER

Responsibilities:
-takes care of operations
-maintainance of operation
-supervision of franchisers
-ensures safety
ASSISTANT FACILITY MANAGER

Helps Facility Manager

Is responsible when FM is not present
– has same responsibilities as FM
BRIEF SUMMARY

Clear business structure

Efficient supervision of managers

Collaboration with other managers
HRM PLAN AREAS
1. Objectives and Policies
2. Organization Structure
3. Requirements Planning
4.
5.
6.
7.
8.
9.
10.
Job Description - Management
Job Description – Operations
Recruitment Methods
Selection Report
Training
Performance Appraisal
Compensation and Benefits
AGENDA

Entry level Jobs

Promotion

Job Analysis Planning

Short and Long-term Recruiting Plan

Brief Summary
ENTRY LEVEL JOBS
• BP Centro hires principally educated
and/or experienced professionals
• Entry level employees could be:
• Assistant facility managers
• No other non-professionals will be on the
payroll except for interns
PROMOTION
• Employees are mainly promoted within the
company
Country manager
=> Top manager
Regional manager
=> Country manager
Facility manager
=> Regional manager
Assistant Facility Manager => Facility manager
• Exchange training programs for managers
• Eventually send abroad
JOB ANALYSIS PLANNING
To improve the organizational performance and
productivity, it will be a constant study of duties, tasks and
activities of different jobs.
Job description approaches:
• Functional job analysis
• Critical incident method
• Position analysis questionnaire system
SHORT AND LONG TERM
RECRUITING PLAN

YEAR 1
FINLAND, TESTING
MARKET

YEARS 2 - 4
BALTICS AND RUSSIA

YEARS 5 - 10
EAST EUROPE
YEAR 1 - FINLAND
•
•
•
•
•
Stablish the headquarter in Finland with coolaboration of UK
staff
Build up brand recognition
Create a strong multicultural team
Start with the recruiting and training process for the managers
Open facilities onlyin mayor cities (Helsinki - Tampere - Turku)
Demand
CEO and Vice-presidents
1 Country manager
2 Regional managers
6 Facility managers
30 Assistant facility managers
Supply
Experience workers from
the mother company
Recruiting outside the
organization
YEARS 2 - 4 - BALTICS & RUSSIA





Continue opening facilities in Finland
Implement Job Analysis
Give to experienced employees the first chance for new
posicions. I.E. Give the chance an assistant from Helsinki
to became a facility manager in Turku.
Send pionering Finnish teams to new markets to build-up
In the beggining in new markets, focus in big centres:
Moscow, St. Petersburg, Tallin, Riga, Vilnius. Later do the
same than Finland when oppening new complexs
YEARS 2 - 4 - BALTICS & RUSSIA
Demand
 Employees for new
complex in Finland
 Employees for new
complex in baltics and
Russia
Supply
 Mainly employees from
old complex
 Entrpreneurs from Finland
mixed with natives
YEARS 5 - 10 EAST EUROPE

Start exchange training programs between
managers

Follow the same idea than in Baltic countries to
expand around East Europe. First settle in the big
centres, with entrepreneurs from the baltic region
plus natives. Later move to smaller cities.
SHORT AND LONG TERM
RECRUITING PLAN
•CEO
1
•VICE-PRESIDENTS 4 (not consider HQ personnel)
Year
FINLAND: 1
BALTIC:
RUSSIA:
Country Man. Reg. Man. Fac. Man. Fac. Ass.
1
2
6
30
2-4
1
6
20
100
2–4
3
3
9
45
5+
3
8
24
120
2–4
1
4
12
60
5+
(2)
16
48
240
8
22
66
330
E. EUROPE: 5 +
BRIEF SUMMARY
The basis for a successful job requirement plan are:
• Profound job analysis
• Intercultural aspect in recruitment
• Implement a good marketing plan, specified for each
region
Approximate number of employees after 5+ years::
•14
Country Managers
•52
Regional Managers
•158
Facility Managers
•790
Facility Assistants
HRM PLAN AREAS
1. Objectives and Policies
2. Organization Structure
3. Requirements Planning
4. Job Description - Management
5.
6.
7.
8.
9.
10.
Job Description – Operations
Recruitment Methods
Selection Report
Training
Performance Appraisal
Compensation and Benefits
TOP MANAGEMENT LEVEL
CEO
VP Finance
VP Human
Resource
VP Marketing
VP Operations
COMMON REQUIREMENTS
• Master’s degree
• Several years related work experience
• Language skills: Fluent English required, Finnish,
Russian and Baltic languages preferable
• Management and Leadership Skills
• Ability to make decisions and solve problems
effectively
•Interpersonal Skills
•Ability to travel/work abroad
CHIEF EXECUTIVE OFFICER
Requirements & Responsibilities
• >10 years related work experience
• Hold final decision power
• Develop vision and strategy
• Company Representative
• Reports to BP corp.(UK)
VP FINANCE
Requirements & Responsibilities
• >7 years related work experience
• Master’s degree in finance
• Ensure balance of company’s financial structure
•Provide financial reports to CEO and BPO Corp (UK).
VP Human Resource
Requirements & Responsibilities
• >5 years related work experience
• Master’s degree in HRM
• Excellent interpersonal skills
• Develop staffing, recruiting, training and compensation
• Motivate and reward employees
VP OPERATIONS
Requirements & Responsibilities
• >7 years related work experience
• Relevant master’s degree
• Responsible of developing business concept
• Significant knowledge of customs, transportation
and distribution channels
•Forecast demand of BP’s products
VP MARKETING
Requirements & Responsibilities
• >5 years related work experience
• Master’s degree in marketing
• Create annual marketing plan and budget
• Forecast future market trends
• Ability to be creative
HRM PLAN AREAS
1.
2.
3.
4.
Objectives and Policies
Organization Structure
Requirements Planning
Job Description - Management
5. Job Description – Operations
6.
7.
8.
9.
10.
Recruitment Methods
Selection Report
Training
Performance Appraisal
Compensation and Benefits
AGENDA

Organizational Chart

Job Responsibilities

Job Requirements

Job Design

Brief Summary
ORGANIZTIONAL CHART
COUNTRY MANAGER
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Reports directly to HQ & functional depts.
Responsible for the operations in the specific
country
Support, monitor & supervise lower level
Accountable for the country budget
Maintains contact with government
Sets quality standards
Responsible for national franchises
REGIONAL MANAGER


Responsible for their own regions & the coordination
of their activities.
Communicates directly with Country manager
–
–

Perform duties assigned
Monthly reports or when necessary
Acts as a team with other Regional Mgr’s
–
–
Uniformity of centers
Implementation of marketing strategy
REGIONAL MANAGER (CONT’)

Support, monitor & supervise the Facility
mgr’s within their regions
–



Instructs & get feedback
Responsible for new location proposals
Responsible for maintenance of franchises
and new contracts
Accountable for regional budget
FACILITY MANAGER
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

Reports to Regional Manager
Responsible for own facility & monitoring the
sites
Implements strategy’s created by upper
mgmt
–

E.g. specific marketing & promotions
Supervisors the quality of the work &
services
FACILITY MANAGER (CONT’)





Ensure smooth flow of facility operations and
local outsourcing
Supervisors and evaluates local outsourcing
Responsible for new location proposals
Responsible for branding & company image
Supervises the asst. facility mgr
ASSISTANT FACILITY MANAGER


Reports daily to Facility Mgr & perform all duties
assigned
Available on site 24h
–

Handles emergencies
Assist FM
–
–
–
–
–
Train, lead & motivate employees
Adapt to any changes
Ensure customer satisfaction
Ensure all work tasks are performed efficiently
Evaluating local outsourcing needs
JOB REQUIREMENTS

Country Manager
–
–
–
–
–
–
–
Masters Degree –
Business/Management/Marketing/Equivalent
Working experience in management, 5 yrs
Team player mentality and leadership capabilities
Aggressive and able to work under pressure
Dynamic & flexible - working hours
Willing to travel or move to other country
Excellent – English and Local Language
JOB REQUIREMENTS

Regional Manager
–
–
–
–
–
–
Bachelor Degree – Management / equivalent (Preferably
Master’s Degree)
Management experience, 3 yrs
Motivation
Willing to travel or move to other country
Posses communication & presentation skills
Fluent in English and in excellent Local Language
JOB REQUIREMENTS

Facility Manager
–
–
–
–
–
–
Bachelor Degree/ equivalent
Knowledge of the service industry
Some experience in management
Ability to work individually
Dynamic & flexible
Fluent English and excellent Local Language
JOB REQUIREMENTS

Assistant Facility Manager
–
–
–
–
–
Bachelor’s Degree/equivalent
Ability to work individually
Knowledge of Service industry
Fluent English and Excellent Native Language
No previous management skills required
JOB DESIGN FOR MIDDLE
MANAGEMENT

Job Enlargement

Job Enrichment

Job Rotation

Flex-time

Alternate Work Schedule
JOB ENLARGEMENT

Horizontal loading

Creating more jobs
JOB ENRICHMENT

Level of job

Authority and control

Individual performance reports

Training programs

Individual specific tasks
JOB DESIGN (CONT’)

Job rotation
– for facility managers & assistant f.m.

Flex-time
- problematic

Alternate work schedule
- altering limitated
BRIEF SUMMARY

4 levels of Middle managers, cooperation

Middle managers responsibilities

Job Design is to improve motivation, job
satisfaction and work ethic
See you again after a 15 Min.
Break!
Tank you for attention
so far.
HRM PLAN AREAS
1.
2.
3.
4.
5.
Objectives and Policies
Organization Structure
Requirements Planning
Job Description - Management
Job Description – Operations
6. Recruitment Methods
7.
8.
9.
10.
Selection Report
Training
Performance Appraisal
Compensation and Benefits
AGENDA

Labour Market

Internal and External Recruitment

Organizational Chart

Recruitment by position

Brief Summary
LABOUR MARKET

Relevant Labour Markets
–
–
Finland
Russia and the Baltics
RECRUITMENT
Internal
External
Locating from within
the company
Locating from outside
the company
RECRIUTMENT BY POSITION





CEO
Functional Manager
Regional Manager
Facility Manager
Assistence Facility Manager
ORGANIZATIONAL CHART
CEO

Internal Resource
–

selected by the executive board
Consideration
– familiar with the company’s culture
– comprehensive knowledge about this position and the
company’s core competencies
– international experience
FUNCTIONAL MANAGER

Internal Resources
–
–

Job posting and bidding
HRIS (Human Resource Information System)
External Resources
–
–
Job Advertisments in the Local Newspapers
Online Job Advertisment
REGIONAL MANAGER

Internal Resources
–
–

Job posting and bidding
HRIS
External Resources
–
–
–
Job Ads in the local newspapers
Online Job Ads
Hire an professional organization
FACILITY MANAGER

External Resources
–
Job Ads in the local newspapers
–
Online Job Ads
–
Educational Institutions
ASSISTANT FACILTIY MANAGER

External Resource
–
Job Ads in the local newspapers
–
Online Job Ads
–
Educational Institutions
FUTURE DEVELOPMENT

GEMS
used both internal and external

RR system
approvals to candidate searches & tracking
BRIEF SUMMARY

Recruitment within the Organization
- Border slection
- Job position and bidig

Recruitment outside the Organization
- advertisement
- internet
- professional Organizations
- Educational Institutions

Develop GEMS, RR system in the future
HRM PLAN AREAS
1.
2.
3.
4.
5.
6.
Objectives and Policies
Organization Structure
Requirements Planning
Job Description - Management
Job Description – Operations
Recruitment Methods
7. Selection Report
8. Training
9. Performance Appraisal
10. Compensation and Benefits
SELECTION PROCESS
Application Review
Initial Interview
Employment Tests
Background Investigation
Preliminary Selection
Supervisory Interview
Medical Examination
Hiring Decision
APPLICATION REVIEW

Review of applications and resumes

Put candidates in order of best qualified

Select the most appropriate applicants
INITIAL INTERVIEW

Highly Structured Interview
–
–
–
Questions Based on Job Requirements
Distinct Types of Questions
Sample Good Responses

–
–
–
Used as benchmark
Consistency Applied
Documentation
“Fostered by EEO Requirements”
EMPLOYMENT TESTS

Perform psychological and honesty tests
–

Employment classification
–
–

e.g MBTI
aptitude test
achievement test
Teamwork ability tests
–
E.g MBTI

To help identify possible relationships with colleagues
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
PRELIMINARY SELECTION

Ranking of applicants based on previous
processes
–

Outsourced to recruitment firms to keep costs
down
Select the best candidates for “second”
round
–
Moving into supervisory interview at HQ
SUPERVISORY INTERVIEW

Done by HQ

In depth panel interview
–

HR manager, local HR manager, supervisor,
hiring manager
Multiple opinions
–
Creates reliability
MEDICAL EXAMINATION

Given to ensure that the health of an applicant is
adequate to meet the job requirement

Outsource to selected medical institutions

Protection against possible later law suits

Can be costly
HIRING DECISION

Goal of the whole application process
–


Identify “will do” and can do” factor
Approach taken
–

most important step
clinical approach
Final decision based on all steps of the
selection process
–
Done by HQ
SELECTION PROCESS TASKS: FUNCTIONAL, COUNTRY
and REGIONAL MANAGERS
Application Screening
Initial Interview
Positions
Outsourced
Outsourced
Employment Tests
Background Investigation
Outsourced
Preliminary Selection
Outsourced
Supervisory Interview
HQ
Medical Examination
Outsourced
Hiring Decision
HQ
Outsourced
SELECTION SCHEDULE
Position






CEO
VP’s
CM
RM
FM
AFM
Selection done by
BPO Headquarters
CEO and UK HQ
HR department of Finnish HQ
HR Department of Finnish HQ & hiring manager
Regional HR Department & hiring manager
Regional HR Department & hiring manager
COST

Outsourcing selection process reduces
personnel needs and expenses in HR
department
–
–


Economies of scales
Lack of competence
By doing the selections right on the first time,
time escalation costs are avoided
Opportunity cost
–
A successful potential who may have been
overlooked
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
BRIEF SUMMARY

Potential employees selected on the basis of
the selection process

More emphasis given on qualifications and
experience
HRM PLAN AREAS
1.
2.
3.
4.
5.
6.
7.
Objectives and Policies
Organization Structure
Requirements Planning
Job Description - Management
Job Description – Operations
Recruitment Methods
Selection Report
8. Training
9. Performance Appraisal
10. Compensation and Benefits
AGENDA








System Model of Training
Training Objectives
Who Needs Training?
Orientation
Recommended Orientation Package
Training for Middle Managers
Training for Top Managers
Evaluating the Training Results
SYSTEM MODEL OF TRAINING
Phase 1:
Needs Assessment
Phase 2:
Design
Phase 3:
Implementation
Phase 4:
Evaluation
TRAINING OBJECTIVES




Build, develop and maintain a strong
corporate culture
Develop loyalty to the organization through
employees’ satisfaction
Improve work performance
Career advancement and development
WHO NEEDS TRAINING?

Assessment is made by doing different kinds
of tests
–
–

Person analysis
Competitive assessment
Test results will show who needs training
mostly
ORIENTATION

Definition: Formal process of familiarizing new
employees with the organization, their jobs, and their
work units.
RECOMMENDED ORIENTATION
PACKAGE






Company history
Copy of specific job goals and descriptions
Telephone numbers and locations of key
personnel
List of on-the-job training opportunities
Safety and emergency procedures
Copy of policy handbook
RECOMMENDED ORIENTATION
PACKAGE

Current organization chart

Map of facility

List of holidays

List of employee benefits

Copies of insurance plans
TRAINING FOR MIDDLE MANAGERS

On-the-job training

Cooperative training

Intensive language courses

Intercultural courses
TRAINING FOR TOP MANAGERS

On-the-job experiences

Seminars and conferences

Case studies

Intensive language courses

Development of computer skills
EVALUATING THE TRAINING RESULTS

Reactions

Learning

Behavioral Transfer

Results Impact
HRM PLAN AREAS
1.
2.
3.
4.
5.
6.
7.
8.
Objectives and Policies
Organization Structure
Requirements Planning
Job Description - Management
Job Description – Operations
Recruitment Methods
Selection Report
Training
9. Performance Appraisal
10. Compensation and Benefits
AGENDA




Performance Appraisal
– Why Bp-centro should use performance appraisal?
– Purposes of performance appraisal
How to develop an effective program?
– Who is involved?
– The evaluated employees in BP-Centro
– Performance appraisal in Finland
– How to convince the employees that is a necessary process
Appraisal methods
– Overview of the methods
– BP-Centro appraisal methods
Brief Summary
PERFORMANCE APPRAISAL

Why Bp-Centro should use performance
appraisal?

Purposes of performance appraisal
PURPOSES OF PERFORMANCE
APPRAISAL

Administrative
Purposes: they provide
input that can be used
for the entire range of
HRM activities (ex.
Compensation
decisions).
•
–
–
–
–
Other purposes:
Promotion
Transfer
Layoff decisions
Possible legal action
PURPOSES OF PERFORMANCE
APPRAISAL

Developmental
Purposes: they provide
the feedback essential
for discussing strengths
and weaknesses as
well as improving
performance.

Other purposes:
–
issues for discussion
eliminating problems
setting new goals
training
growth plans
–
–
–
–
THE BOTTOM LINE
Performance
Appraisal
Program
Documentation
''paper trail''
Salary Administration
and recommendations
Performance
Feedback
Meeting legal
requirements
Promotion
Strenghts and
Weaknesses
Motivator for employees
Training
Organizational
improvement
‘ Bp-Centro ’
Individual
improvement
HOW TO DEVELOP AN EFFECTIVE
PROGRAM?

Who is involved?

Who is evaluated?

What is the frequency?

How to convince employees that this is a
necessary process?
WHO IS INVOLVED?

The HR department has to take the primary
responsibility for coordinating the activities with the
managers and the decided program

Middle-Management must initiate and respond

After thorough start-up > Middle Managers will be
responsible for their own appraisal programs.
THE EVALUATUED ARE:






CEO BP-CENTRO: ==> Annually, MBO
Top Management:
==> Annually, MBO
Country managers: ==> Annually, MBO, BOSS 3600
Regional managers:==> Annually, MBO, BOSS 3600
Facility managers: ==> Quarterly, MBO, BOSS 3600
Assistant Fac.Managers: ==> Quarterly, BOSS 3600
PERFORMANCE APPRAISAL
FINLAND



Appraisal system is somewhat familiar to
every Finnish company and the managers
are used to the system.
Important factor in career development.
In Eastern European Countries and Russia
this system is not that familiar as it is in
Finland > Introduction to the program!
HOW TO CONVINCE TO EMPLOYEES
THAT IT IS A NECESSARY PROCESS?

In Finland it should not be a problem
–
–

realize its benefits
part of everyday work life
In Eastern Europe and Russia, before
implementing the appraisal system, there
should be an introduction. (Ex. Seminars,
take employees to Finland and introduce how
the system works, etc)
PERFORMANCE APPRAISAL
METHODS

Trait Methods
–
–
–
–

Graphic Rating Method
Mixed Standard Method
Forced-Choice Method
Essay Method
Results Methods
–
–
Productivity measures
Management by objectives(MBO)>BP-Centro
PERFORMANCE APPRAISAL
METHODS CONT’D

Behavioral Methods
–
–
–
–
Critical Incident Method
Behavioral Checklist Method
Behaviorally Anchored Rating Scale (BARS)
Behavior Observation Scales Systems (BOSS)>BPCentro
APPRAISAL METHODS
IMPLEMENTED IN BP-CENTRO

Management by objectives (MBO)

BOSS 3600

Why these methods are chosen?
MANAGEMENT BY OBJECTIVES

measures performance on the basis of employee
achievement of goals set by mutual agreement of
employee and manager >

Why MBO is chosen?
– The system acts as a goal setting process whereby
objectives are established for the organization (BPCENTRO), and departments, and individual
managers and employees (country, regional and
facility managers)
– Found effective and motivational method
– Widely used in top Finnish firms
BP-CENTRO MBO PROGRAM
CEO - Organization’s common goals.
Finance, Marketing, HR,
Logistics managers
Departments’ specific goals
Country, regional, facility and
assistant facility manager lists
goals and measures for
subordinate
Review of organization
performance
Country, regional, facility and
assistant facility manager
proposes goals and measures for
his or her job
Joint agreement on goals
New input provided
Review period providing
feedback on results measures
against establish goals
Inappropriate goals
eliminated
Final review of results measures
against establish goals
3600



Is an all-rounder form of evaluating
employees’ performance from all angles that
includes supervisors, peers, subordinates
and customer
Quality of information is better than other
systems
It may lessen bias/prejudice because
feedback comes from many people
WHAT’S THE BOSS?






A behavioral approach to performance appraisal that measures
the frequency of observed behavior and effective goal meeting.
Similar to its predecessor BOS> Behavior Observation Scales
Enables performance observation and meeting objectives
assigned to the top also.
– New approach
360-degree appraising
Specific rating system with room for development.
Involves possibilities for promoting and training
– Motivates employees
SAMPLE OF BOSS
For each behavior observed and goal met, use the following scale
5
4
3
2
1
represents almost always 95-100% of the time
represents frequently
85-94% of the time
represents sometimes
75-84% of the time
represents seldom
65-74% of the time
represents almost never
0-64% of the time
Job Performance
1. Performs the job requirements
2. Motivates other employees
3. Focuses on key growth areas
4. Runs promotion events
5.Formulates and meets everyday goals
6. Follows up on customer leads
/promotion possibility
/ training
almost never
almost always
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
ADVANTAGES OF BOSS






Distinguishes good from poor performers
Provides feedback
Identify training needs
Easy to perform
Completes MBO
Applicable to different countries
Brief Summary



The success of an organization depends
largely on the performance of its human
resources
Performance appraisal programs give the
basis to compensation
Organizational Development and
performance enhancement.
THE BOTTOM LINE
Performance
Appraisal
Program
Documentation
''paper trail''
Salary Administration
and recommendations
Performance
Feedback
Meeting legal
requirements
Promotion
Strenghts and
Weaknesses
Motivator for employees
Training
Organizational
improvement
‘ Bp-Centro ’
Individual
improvement
HRM PLAN AREAS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Objectives and Policies
Organization Structure
Requirements Planning
Job Description - Management
Job Description – Operations
Recruitment Methods
Selection Report
Training
Performance Appraisal
Compensation and Benefits
AGENDA





Compensation Objectives & Policies
Factors Affecting Wage Mix
Salary & Incentives Structures
Benefits
Brief Summary
COMPENSATION OBJECTIVES






Pay market-competitive compensation
Achieve internal & external pay equity
Ensure fair employee treatment
Promote open & understandable pay
practices
Comply with all governmental compensation
regulations
Promote pay-for performance standards
COMPENSATION OBJECTIVES




Mesh employees’ future performance with
organizational goals
Control the compensation budget
Attract new employees
Reduce unnecessary turnover
COMPENSATION POLICIES









General guidelines for compensation that are equal in every
region
Pay-for performance standard
No pay secrecy – open policy
Different compensation options/plan for each level of
managerial employee
Competitive base salary (merit pay program)
Short-term incentives - bonuses
Long-term incentives – stock plans
Indirect compensation- general benefits
Nonfinancial compensation –perks eg: employee recognition
program, special relocation benefits, etc
FACTORS AFFECTING THE WAGE MIX





Internal factors
BPO’s compensation policy
Worth of a job – job evaluation
Employee’s relative worth in meeting job
requirements
BPO’s ability to pay
FACTORS AFFECTING THE WAGE MIX






External Factors
Labor market condition
Area wage rates
Collective bargaining
cost of living
legal requirements
COMPENSATION STRUCTURE






Determining Salary Rate
Use point system to determine a job’s relative value by
calculating the total points assigned to it.
Points given to compensable factors like skill, effort,
responsibility & working conditions.
Wage & Salary Survey
Survey of wages paid by employers in an organization’s
relevant market.
Job evaluation & wage-survey data used jointly to to link the
likelihood of both internal and external equity.
POINT SYSTEM
Grade 1
AFM
Grade 2
FaM
Grade 3
RM
Grade 4
FuM
CM
Grade 5
CEO
SKILLS
communication
interpersonal
language
computer
leadership
contract
teamwork
working experience
education
problem solving
stress management
30
30
10
5
25
5
20
25
25
20
15
60
60
20
10
50
10
40
50
50
40
30
90
90
30
15
75
15
60
75
75
60
45
120
120
40
20
100
20
80
100
100
80
60
120
120
40
20
100
20
80
100
100
80
60
150
150
50
25
125
25
100
125
125
100
75
responsibility over the entity
planning
implementation
decision making
work of others
dealing with limitations
30
20
20
25
15
10
60
40
40
50
30
20
90
60
60
75
45
30
120
80
80
100
60
40
120
80
80
100
60
40
150
100
100
125
75
50
30
10
370
60
20
740
90
30
1110
120
40
1480
120
40
1480
150
50
1850
RESPONSIBILITIES
JOB CONDITIONS
mobility
hazards
TOTAL
PAY GRADES

Grade 1: Assistant Facility Managers

Grade 2: Facility Managers

Grade 3: Regional Managers

Grade 4: Country and Functional Managers

Grade 5: CEO
SALARY RANGES
monthly, Euros
Grade
Finland
Russia
Baltics
1
2,500
800
1,200
2
4,500
1,100
1,800
3
6,500
2,100
2,800
4
9,500
3,400
4,900
5
12,000
Monthly Salaries in Finland
Salary
20000
15000
10000
5000
0
1
2
3
Grade
4
5
RECOMMENDED COMPENSATION
MODEL
Stock Pension
Option Plan
Merits
C.E.O.
Country Manager
Functional Manager
Regional Manager
Facility Manager
Ass. Facility Manager
yes
yes
yes
yes
yes
yes
option
option
option
option
option
option
yes
yes
yes
yes
yes
yes
Bonus Car
Cell
Phone
yes yes yes
yes yes yes
yes yes yes
yes option yes
yes option yes
yes
no yes
BENEFITS

Core benefits are provided in all countries.

Flexible benefits plans (cafeteria plans)
–
–
Benefit plans that enable individual employees to
choose the benefits that are best suited to their
paricular needs.
Additional benefits vary among the countries.
CORE BENEFITS

Health care

Day care

Cellular phone

Food services

Housing and moving expenses
ADDITIOANAL BENEFITS IN FINLAND

Company car

Free time activities

Discounts on goods and services purchased
at the company’s store
Additional Benefits in Russia and
the Baltics

Education for children

Additional health care services

Free time activities

Discounts on goods and services purchased
at the company’s store
BRIEF SUMMARY




A strategic compensation plan for employees that enhance
motivation & growth, as well as aligning their efforts with BPO’s
objectives, philosophies and culture.
BPO must balance each of these concerns while still remaining
competitive.
Consider the internal & external forces that influence directly, or
indirectly, the rate at which employees are paid.
Create a value-added compensation program in which the
components of the compensation package ( benefits, base pay,
incentives, etc.), both separately and in combination, create
value for BPO and its employees.
BP - CENTRO
CONCLUSION
Any Questions you’d like
to ask?