The ”BP – Centro” Finland Case
Our Proposal for
”Implementing the HR Part of the Strategic Plan”
Mikkeli, June 2002
Whole Agenda
• General Objectives
• Structure
• Planning Needs
• Job Description
• Recruitment
• Selection
• Training
• Performance Appraisal
• Compensation
1
Christina Brehme
Cécile Rozuel
Evelyn Wee
Team 1
Objectives and policies
June, 2002
Agenda
• Mission Statement and Commitments
• Our philosophy
• Values and Ethics
• Legislation and Governments
• Long Term Organizational Objectives
• Short Term Organizational Goals
• Attitude Toward Change
• Policies
3
Mission Statement and Commitments
•
We are dedicated to providing high quality products and services to our customers 24
hours a day, 7 days a week, 365 days a year.
•
We are involved in the real estate business and aim to develop a concept of shopping
complex through Eastern European countries.
•
We are commited to satisfy:
- our shareholders guaranteeing performance and profitability
- our customers providing a Total Quality Management
•
We are dedicated to work in harmony with:
- the community we are operating in
- the stakeholders affected by our activities (unions, environmental actors…)
4
Our philosophy
We aim to maximize our CAPITAL
C
ommitment
A
bility
P
erformance
I
mprovement
T
echnology
A
bide by the law
L
oyalty
5
Values and Ethics
We believe in:
• The respect of Human Rights as stated in the UN Declaration of Human Rights
• The protection of the natural environment
• High quality service delivery commited to customer satisfaction
• Innovation and collaboration for continuous improvement
• Supportive leadership to build a positive organizational atmosphere
• Fairness and honesty in human relationships
• BP Centro as a worldwide reference for excellence
6
Legislation and Governments
• Work legislation
- We abide by the legal requirements in terms of work legislation in the countries
and regions we are operating
- We apply the principle "Equal pay for Equal Work"
• Governments
- We aim to ensure good relationships with both national, regional and local
governments
- We aim to work closely with local governments in a mutually beneficial
relationship
- We aim to be fair, direct and adaptable to the political environment we are
working in
7
Corporate culture
• Management style
- participative management
- supportive leadership
• A global company in a global world
- promote common references ("think global")
- manage diversity
- be adaptable to changing cultural environments ("act local")
- facilitate cultural exchanges through mobility
• Concern for employees’ development
- organize training for all
- plan career development and internal promotion
- be open, fair and efficient
- offer Equal Employment Opportunities and fight work discrimination
8
Long Term Organizational Objectives
• Promote the BP Centro corporate culture.
• Build excellence using edge-cutting technology and state-of-the-art HRM methods.
• Create training centers to develop KSAs, continuously improve service delivery and
enhance corporate loyalty.
• Create an effective organizational structure which encourages initiatives, self-assessment,
communication and collaboration.
• Design an effective compensation policy that advocates pay for performance.
9
Short Term Organizational Goals
• Corporate language:
- English
- bilingualism as the rule because hiring local Facility Managers
• Facilitate the integration of BP Centro values and culture through language, dress and
socialization practices
• Build long-term relationships and enhance efficient communication and collaboration with
franchisees
• Encourage communication among Facility management teams
• Guarantee effective customer service 24/7 and 365 days a year
10
Attitude toward change
• Be responsive to change in terms of quality management
• Adopt a proactive attitude toward change
• Step 1:
- need for some stability and landmarks so as to set up the company’s reputation
- a global concept needs established internal rules to be perceived as global by
customers
- be directive to create coherence
• Step 2:
- adapt to the economic and social environment
- anticipate future opportunities
11
Policies
1. Accountabiliy to stakeholders:
- relationship management (coordinate relationships with stakeholders to avoid
prejudicial activities to environment and the community)
- impact assessment to evaluate the consequences of business activities on people
(proactive approach)
2. Relationship with employees:
- employee empowerment
- reward excellence through bonuses or share options
- always get the best person for the job, from within if possible
- make sure individual goals match corporate goals
- provide possibilities to balance work life and family life
12
Policies
3. Internal structure:
- favor constant tapping of upcoming technology to:
# minimize labor cost
# develop a HRIS to enhance communication, improve efficiency of
information sharing, manage career development
- build a team-oriented organization
- develop common project and goals
- outsource when feasible
4. Monitoring, Controlling:
- measure results regularly against set goals and re-evaluate goals if necessary
- benchmark regularly for continuous improvement
- encourage structured feedbacks
- organize internal social auditing
13
Tan Chong Sun
Tuulikki Pöllänen
Lena Hoppe-Schumacher
Team 2
Creating the H.R. Organizational Structures
June, 2002
Agenda
•
The Organizational Chart
•
Job Description
•
The Location
15
Organizational Chart
Headquarter
BP
Seniormanagement
Headquarter Europe ”BP-Centro”
(incl. Finland, Russia. Baltic)
incl. Marketing, HRM, Finance, Operation ”VP”
Countrymanager
Finland
AM
Marketing
AM
HRM
AM
Finance
AM
Operation
Area Specific
Officer*
Regional
Manager
Regional
Manager
Facility
Manager
Countrymanager
Baltic
Countrymanager
Russia
Regional
Manager
Middle
Management
Facility
Manager
Facility
Manager
Contract
Employees
* in the first project stage, only one group of Area Managers
which are responsible for all three countries (cross function)
16
Facility
Manager
Contract
Employees
Contract
Employees
Labour
Level
Job Description
Headquarter
Europe
Country
Manager
Regional
Manager
CEO
VPs
Coordinates Finland, Russia and
the Baltic Countries
Marketing, HRM, Finance, Operations ( in
European HQ with the CEO)
Communicates his reports to the
US Headquarters
HRM
Controls and cooperates with VP
and managers from different chart
levels
Assume the strategic movements
of the organization outside the US.
Facility
Manager
Multi-cultural (USA, Finland)
Selecting experienced and mobile
managers
Training and development
Report to the CEO
Responsible for strategic plan implementation
Team consisting of Americans and
locals
Workstream Responsibilities
17
Contract
Employee
Job Description
Headquarter
Europe
Country
Manager
Regional
Manager
Report to the CEO
Responsible for the three geographic areas:
Finland, Russia, Baltic.
18
Facility
Manager
Contract
Employee
Job Description
Headquarter
Europe
Country
Manager
Regional
Manager
Facility
Manager
Responsible for site locations and openings
(uniformity)
Strategy within the different areas
Should be locals who know the market
Reports to Country Manager
Supervise Facility managers
Connection between the functional managers and
the facility managers
19
Contract
Employee
Job Description
Headquarter
Europe
Country
Manager
Regional
Manager
Facility
Manager
Contract
Employee
Day-to-day Management
Organize the building up
Find the most suitable locations for the facilities
Find best and the most cost efficient contractors
to carry out the construction work.
Does the needed outsourcing-contracts
Supervise homogeneity of the facilities
Report to the Regional manager
Marketing and promotion
20
Job Description
Headquarter
Europe
Country
Manager
Regional
Manager
Facility
Manager
Contract
Employee
Commitment with the company
Career opportunities
Temporary jobs: the ever-changing economic
climate and increasingly competitive global
market does not enable BP to offer 'jobs for life'
Possibility in developing skills: formation
courses, seminars, events…
21
Locations
The Regions
Red: First year
Centers in Helsinki, Tampere,
Kuopio, Oulu
Green: Following years expansion to
the Baltics and Russia
Centers in Tallinn, Riga,
Vilnius, St. Petersburg,
Moscow and some more in
Finland and Russia
22
Russia and Baltic Countries
First year: Experiences in Finland
Second year: Expansion to the Baltics and Russia
First not many Americans, but Finns, in the management
Local people will be trained and then involved in the management
In the following years continuous expansion in all of the regions
23
Emily Lim
Michael Sauer
Marc Hoppichler
Team3
Job Requirements Planning-Future Staffing Needs
June, 2002
Agenda
•
Job Requirements
•
Job Analysis Planning
•
Promotion or Job Rotation
•
Plan
25
Job Requirements
Headquarter
Europe
Country
Manager
Regional
Manager
Facility
Manager
CEO
VPs
Coordinates Finland, Russia and
the Baltic Countries
Marketing, HRM, Finance, Operations ( in
European HQ with the CEO)
Top Management People
Work Hand in Hand with CEO
Set the Goals for the Project
Responsible for strategic plan implementation
Built up a Global Team
Supervise the project
Specialists in his sector
Search for Sponsors (internal)
Relation with stakeholders
26
Contract
Employee
Job Requirements
Headquarter
Europe
Country
Manager
Regional
Manager
Ability to coordinate and set priorities
Time management and decision quality
concerned
Excellent communication skills
Professional ability to interact with internal and
external clients at all levels
27
Facility
Manager
Contract
Employee
Job Requirements
Headquarter
Europe
Country
Manager
Regional
Manager
Facility
Manager
Experience in direct contact with clients and
negotiation of contracts
Knowledge of team motivation techniques
Very good knowledge of English and another
language (Finnish, Russian, Estonian, Latvian,
Lithuanian)
28
Contract
Employee
Job Requirements
Headquarter
Europe
Country
Manager
Regional
Manager
Facility
Manager
Contract
Employee
Knowledge about the local region
Experience in Business and Techniques
Very good knowledge of the local language
Motivate the Employees
Implement the firm guidelines direct to the
customer / end user
Gives guidance to facility coordinators
29
Job Requirements
Headquarter
Europe
Country
Manager
Regional
Manager
Facility
Manager
Contract
Employee
Openness and Friendliness towards customers
Enthusiasm to work and willingness to take
responsibility
Knowledge of the country’s specific language
Service-oriented attitude
30
Job Analysis Planning
"Job Analysis in a Changing Environment"
• Finland: test market, movement to another market
• Dynamic environment: jobs demand rapid change, data won't be outdated
31
Promotion or Job rotation
Promotion:
Better fit for organization
Mixture from internal and external applicants
Job rotation:
Ability to switch managers to different regions
But no rotation in the sense of different functional areas
32
Plan Year 1
• Think global (American vision to develop the concept worldwide)
• Act local (adapt the management style to the local culture and hire local junior
managers).
• Open facilities in strategic locations (4 centers in Finland)
• Management in Finland is built with the help of US staff
• Built company objectives and culture through training
• Test trial in Finnish market with the outsourcing model
• Establish communication and structure
• Built brand recognition in Finland
• Built up a training center and establish own training programs for future managers
involved in implementing the concept in Russia and the Baltic countries.
• Build long-term relationships and enhance efficient communication and collaboration
with franchisees
• Guarantee effective customer service 24/7 and 365 days a year
33
Plan Year 2 - 4
•
•
•
•
coordinate the single market entries
create new teams from intern sources as well as extern recruitment
shift pioneer Finnish teams to new markets to guide for built-up phase
enhance strong communication between country/regional level of all three
regions
• establish a brand name in the Baltic-Russian region
Finland:
• foster growth in Finnish market
• smooth operating processes
• create a lessons-learned guide
34
Plan Year 2 - 4 (continued)
Russia:
• focus on the two big centers St. Petersburg and Moscow after a test case in a
smaller city in Russia outside a conurbation
• establish swiftly a representation
• expand the organizational structure with Russian Personnel trained in Finland
or in the Baltic's
Baltic:
• get feet on big cities: Tallinn, Riga and Vilnius
• follow a thoroughly planned entry strategy
35
Plan Year 5 - 10
•
•
•
•
•
•
•
Improve on productivity
Total Quality Management
Redouble profit
Become large provider of hypermarket facilities
Human Resource Management forces exchange between regions
BP Centro will become the regional center of excellence within 5 years
First place on the satisfied customer list
36
Managers needed
First Year
Following Years (short time)
Country Manager
(Finland)
1
Country Manager
(Finland, Baltic, Russia)
3
Area Manager*
(HR, Finance, Marketing, Operation)
4
Area Manager
(HR, Finance, Marketing, Operation)
4
Regional Manager
(South and North Finland)
2
Regional Manager
>8
(South and North Finland, Estonia, Lithuania,
Latvia, St. Petersburg Area, Moscow Area, Rest
of Russia)
Facility Manager
(each Station)
4
Facility Manager (at a rough guess)
(each Station)
* they are already exist in the Headquarter
37
>20
Director: Peter Ikhumhen
Manager: Alejandra Padilla
Lena Hoppe-Schumacher
Marko Sarstedt
Team 4
Job Description Senior Management
June, 2002
Agenda
• Job Descriptions
 CEO Baltics, Russia and Finland
 VP Marketing
 VP Human Resources
 VP Finance
 VP Operations
39
CEO Baltics, Russia and Finland
• Establish a relationship with private and public sector
organizations.
• Work closely with governments.
• Determine and formulate policies and business
strategies.
40
CEO Baltics, Russia and Finland
• Direct, and coordinate operational activities at the
highest level of management.
• Plan and implement future expansion.
• Have final decision power.
41
CEO Requirements
• Master’s. degree in field of business.
• 10 years of work experience (internationally).
• Speak a minimum of two languages fluently
(Russian, Estonian, Latvian, Lithuanian).
•Be able to make decisions.
42
Common Job Requirements
• Master’s degree.
• 5-10 years experience (Internationally).
• Strong analytical and leadership qualities.
• Managing skills.
• Languages and computer skills.
• Commitment to company.
43
VP Marketing
• Determine the demand for products and services.
• Develop pricing strategies.
• Oversee product development or monitor trends that indicate
the need for new products and services.
• Develop an overall marketing budget.
44
VP Human Resources
• Programs on planning, staffing and recruiting.
• Motivation and development for mobility.
• Training modules.
• Market competitiveness.
• Develop an overall marketing budget.
• Advice and counsel workers.
45
VP Finance
• Provide operational and administrative direction.
• Ensure balance of company’s financial structure.
• Implement startegies to improve profitability.
• Responsible for legal issues.
• Report to CEO.
46
VP Operations
• Work closely with senior executives and regional managers.
• Responsible for flow of organization.
• Support and development of expansion across Finland and the Baltic
region.
• Achieve short and long-term strategic goals.
• Set perfomance goals to each division and monitor.
47
Jukka Kaitila
Peter Ikhumhen
Marc Hoppichler
Team 5
Middle Management Job Descriptions
June, 2002
Agenda
• Job Responsibilities / Requirements
• Job Design
• Change Management
49
Country Manager
JOB RESPONSIBILITIES
JOB REQUIREMENTS / QUALIFICATIONS
Reports to CEO
Masters degree in Business / Marketing or
Management
Supports, Monitors and Supervises Regional
Level Managers
Sufficient working experience
Accountable for the Country Budget
Leadership skills
Country Level Policies and Strategies
Ability to work under pressure
Contacts with National Franchises
Ability to work flexible / extended working hours
Contacts with the Government
Must be ready to move to another country
Sets Standards of Quality Nationwide
Fluent in Finnish, English and Russian
50
Regional Manager
JOB RESPONSIBILITIES
JOB REQUIREMENTS / QUALIFICATIONS
Reports to Country Manager
Bachelor (Master´s) degree in Management or
equivalent
Responsible for site locations
openings
Joband
Responsibilities
/ Requirements
Some working experience
Supports, Monitors and Supervises Facility
Managers within the region
Knowledge of team motivation techniques
Accountable for the regional budget
Preferably ready to move to another country
Looking for regional franchises
Excellent skills in Communication and
Presentation
Associates with other Regional Managers
Fluent in Finnish, English, (Russian)
51
Facility Manager
JOB RESPONSIBILITIES
JOB REQUIREMENTS / QUALIFICATIONS
Reports to Regional Manager
Bachelor´s degree (equivalent)
Day-to-day Management
Knowledge of the service industry
Local Outsourcing and Supervising
Ability to work individually
Looking for local companies and keeps contact
with them
Local languages skills and basics in English
Highly flexible availability
Monitors the site
52
Job Design
CEO
Enrichment
Enlargement
Job Rotation
Flextime
Alternative Work Schedule
Functional Country Regional Facility
Managers Managers Managers Managers
N
N
N
Y
N
N
N
N
Y
Y
53
Y
Y
Y
Y
N
Y
Y
Y
Y
N
Y
N
Y
Y
N
Change Management needs to be an integrated part of the project right
from the start to prepare the organization for this journey. Motivate &
overcome barriers on all levels.
• Multiplication
of Know-how
Tight collaboration
with key contacts
from USA and UK
Headquarter
CEO,VP
Integration
of Experts
from USA
• Insure acceptance of
organizational change
On-going
support
• Communication of
change
Communication with
Neighbour
Countries
Planning/
Adaptation
Implementation of
measures
Permanent
integration
of Country
Managers
Preparation of
Organization
Time
Build up a
core concept
for Russian
and Baltic
Workshops
with all Managers
from Finland
Country visits
reflecting all
Managers
concerned
• Decision on
organizational
change
• HRM Concept
• Preparation for change
54
Kaitila Jukka
Leppänen Tuukka
Team 6
Recruitment Methods
June, 2002
LABOR MARKET
”Area from which applicants are to be recruited”
We know:
• positions to be filled
• qualifications required
We must answer the questions:
• where?
• how?
56
CEO
Internal resources
• HQ personnel (VPs)
• Job posting and bidding
• HRIS
External resources
• Globally as long as requirements met
• Executive Search Firms (head hunters)
57
VICE PRESIDENTS
Internal Resources
• Country level managers
• HQ personnel
• Job posting and bidding
• HRIS
External Resources
• Specialized private employment agencies
58
COUNTRY MANAGER
Internal Resources
• E.g. Regional managers
• Job posting and bidding
• HRIS
External Resources
• Executive search firms
59
AREA SPECIFIC MANAGERS
Internal Resources
• E.g. Regional managers
• Country HQ personnel
• Job posting and bidding
• HRIS
External Resources
• Specialized private employment agencies
60
REGIONAL MANAGER
Internal resources
• E.g. facility managers
• Job posting and bidding
External resources
• Advertisements
• Private / Public Employment Agencies
61
FACILITY MANAGER
External Resources
• Advertisement
• Public Employment Agencies
• Educational Institutions
62
INTERNAL RECRUITMENT
vs.
EXTERNAL RECRUITMENT
Advantages
• Capitalizing on employee investment
• Greater pool of canditates
• Improving morale within organization
• Source of new ideas
• Corporate philosophy already adapted
• ”Been there”
Disadvantages
• Company blindness
• Increased dissatisfaction among
existing employees
• Uncertainty increases
63
PROCESS
Recruitment process:
• beginning with the top management
going down in hierarchy
• upper level management participates in the process of next level
recruitment
• equal employment opportunity
Methods to lower recruiting costs:
• Internal recruiting
• Use of bulletin boards
• Realistic Job Previews (RJP)
• Centralized recruiting
64
INTERNSHIP PROGRAM
Requirements:
– Highly motivated
– Enthusiastic with new ideas
– Interested in working for the company
– Positive attitude and good with people
Positioning
– assistants to middle-level managers
– country HQ staff
65
FUTURE
Shift more from external to internal recruitment
• Employee referrals
• Posting and bidding
• Replacement charts
• Promotions
66
Tuukka Leppänen
Miia Montonen
Tuulikki Pöllänen
Team 7
Selection Techniques
Steps of Selection Process
Hiring decision
Medical testing
Supervisory interview
Preliminary selection
Background investigation
Employment testing
Initial interview
Application Review
68
Key Principles
• All steps of the process are carried out in the selection for
every position
• Candidate can be rejected after each step
• Several steps oursourced to reduce personnel needs and
expenses in HR department
69
The Process in Detail
• Application review
• Pre-screening of applications
–Candidates are put in order of best qualified
–Resume, cover letter, and BPOAmoco application forms
are used
–Outsourced
70
The Process in Detail
• Initial interview
• Objective is to reduce the number of applicants and choose
from among those individuals who are qualified to continue
in the selection process
–Highly structured Interview by HR department
• Set of standardized questions based on job analysis
• Situational, job knowledge, and worker requirements
questions
• Established set of answers
• Several interviewers
• Documented
71
The Process in Detail
• The employment tests
• Objective and standardized measure of a sample of behavior
that is used to gauge a person’s knowledge, skills, abilities
and other characteristics in relation to other individuals
–Personality test (e.g.Myers-Briggs Type Indicator Test)
–Outsourced
72
The Process in Detail
• Backround investigation
• Purpose is to verify the honesty of the candidate and the
information provided
–Checking of
• references
• credit bureaus
• school and college history
• work history
–Outsourced
73
The Process in Detail
• Preliminary selection in the HR department
– Applicants ranked by previous processes
– Best candidates selected for the second round
• Supervisory interview
• Focuses on actual work incidents in the interviewees past which provide
in depth information of applicants behavior relevant for the position
applied
– Panel interview
• Panel members: closest superior and consults from the HR
department
– Behavioral description questions
– Several interviewers to ensure multiple opinions
74
The Process in Detail
• Medical testing
• To ensure that health of applicant adequate to job
requirements
–Drug testing
–Outsourced
• Hiring decision
–Done by the closest superior and consults from the HR
department
75
Interviews
• All the questions are job related to avoid discrimination and
gut feelings
• Sample interview questions:
–What special aspects of your education or training have
prepared you for this job?
–What is your long-term career objective?
–What kind of approach do you use when getting your
employees to accept your ideas?
–Tell us about your experiences in leadership/teamwork
from your last job?
76
Steps Emphasized
CEO VP CM RM FM
Application review
X
Initial interview
X X
Employment testing
X
X
Background investigation X
X
Supervisory interview
X
X
X
Medical testing
X
X
X X X
77
Selection Schedule
Position
Selection done by
CEO
BPO Headquarters
VP
CEO and Headquarters
CM & AM
HR department of Headquarters
RM
CM – team
FM
CM - team
78
Validity and Reliability
• Selection process should provide as reliable information as
possible about applicants so that their qualifications can be
carefully matched to the job specifications
• Predictive validity-method
–Involves testing applicants and obtaining data after those
applicants have on the job for some time period
• If problems rise in the performance measurement, the whole
selection process should be revised
79
Pauliina Saresma
Cécile Rozuel
Christina Brehme
Emily Lim
Team 8
Training
June, 2002
Agenda
• Training Objectives
• Training Requirements
• Continuous Improvement
• Cultural Issue
• Training Policy
• Orientation Packet
• Training Needs per Level
81
Training Objectives
1. Build, develop and maintain a strong corporate culture (BP and BP Centro)
2. Develop loyalty to the organization through employee’s job satisfaction
3. Increase productivity and profitability
4. Manage career advancement and development
5. Ensure up-to-date KSAs to adapt to changing environments and increase flexibility
6. Create an organizational structure opened to changes, improvements and initiatives
82
Training Requirements
1.
Be adapted to the needs of the organization (organization analysis)
2.
Be adapted to the needs of employees (person analysis, HRIS)
3.
Be cost-effective (training centers, videotapes and video-conferences)
4.
Be integrated to the management process and objectives
5.
Participate in shaping the career development / succession planning
6.
Use efficiently the already-existing training programs and capabilities of BP
7.
Be both external (consulting services outsourced) and internal (BP or BP Centro
trainers)
83
Continuous improvement
• Enhanced communication between Managers
• Organize regular meetings with upper Managers and colleagues (i.e. Facility Managers
meeting each month with their Regional Manager to share experience  Cooperation)
• For all employees  reinforce the concept of TQM via conferences and meetings
• Encourage feedback and employee initiatives at all levels
• Using IT as often as possible:
- to facilitate access to updated data
- to act proactively to changes saving costs
• Benchmarking and regular review of our current position on the market (TQM, market
share, productivity, profitability…)
84
Cultural Issue
Stage 1:
• Top Managers come from other BP international division (Country Managers)
• In charge of recruiting and training their local subordinates (Regional Managers, Facility
Managers and their assistants)
• Top Management training in the UK Headquarters
• Middle-Management training at the Finnish/Baltic training center
• On-the-job training in Finnish centers for Russian and Baltic employees (lateral
promotion)
Stage 2:
• Middle-Managers from Finland promoted to Top Management positions
• Both external and internal Managers to implement expansion plans in Russia and the
Baltic countries
• Top Management training in the UK Headquarters
• Middle-Management training at the Finnish/Baltic or the Russian training center
85
Training Policy
• Preparation by BP Headquarters HR Managers (set guidelines for training)
• Coordination by HR Country Managers, with participation of Regional Managers:
- needs assessment
- post-training evaluation
- instructional objectives
- training schedule
- choice of training methods
- integration to career development and
succession planning
• Training Measurement:
- encourage feedbacks for future improvement
- evaluate the training program (transfer of training, results, learning)
- compare pre-training performance and expectations evaluation with post-training
performance and appreciation evaluation (Expectations matched? Critics?
Remarks for future improvement? )
86
Training Policy
• Favor on-the-job training methods to:
- encourage active participation
- ease understanding
- maximize cost-efficiency
• For all employees:
- orientation packet
- a 2- 4 days compulsory training period on work time per year (TQM, General
Management training programs, Communication Improvement programs, Safety…)
- 3 other possibilities per year to enroll in a training program (if required 
compulsory training to gain specific skills)
- possibility to take computers or languages courses at Open Universities on free
time (fees paid by the company)
• For key individuals:
- more specifically oriented training programs
- lateral promotion
- experience as assistant to key functions (« job rotation »)
87
Orientation Packet
• Purpose: facilitate integration, develop corporate identification and pride
• For all employees when integrating BP Centro
• Provided at the Finnish/Baltic training center (stage 1&2) or the Russian training center
(stage 2)
• Set up by HR Managers from BP HQ and BP Centro Top Managers
• Content:
- Presentation of the company (strategic goals, mission, culture, location)
- Presentation of the organizational structure (incl. Top Managers)
- Behavorial expectations
- Explanation of job duties
- Performance evaluation criteria
- General conditions of employment (EEO, hours, employee benefits)
- Safety regulations
• New employees presented to their direct supervisor in smaller teams
88
Country Management Training Program
WHERE?
Provided at the UK Headquarters
+ participation to international meetings when
necessary
WHO?
- consulting firms
- experienced managers from BP, BP Centro US
- « professional » trainers (« gurus » i.e. Michael T.
Bagley at Ingersoll-Rand)
WHAT?
- enhance corporate culture
- ease information flow and communication
(vertically, horizontally)
- enhance interpersonal skills
- train for crisis management and conflict
resolution
HOW?
- coaching, mentoring, tutoring
- seminars and conferences (emphasis on concern
for people)
- case studies (assistants  managers)
- role playing (voluntary)
- assess readiness for transition to Baltic
countries and Russia (managing change)
89
Regional Management Training Program
WHERE?
WHO?
Provided at the training centers
+ participation to meetings abroad when necessary
- consulting firms (for key training programs)
- experienced managers from BP, BP Centro US
WHAT?
HOW?
- enhance corporate culture
- specify internal policies and procedures
- enhance interpersonal and communication skills
- build positive organizational atmosphere
- identify future top managers
- manage change
- coaching, tutoring, mentoring
- staff meetings
- seminars and conferences (emphasis on concern
for people)
- management games (if possible created for the
company)
- role playing (voluntary)
- lateral transfer (assistant positions)
90
Facility Management Training Program
WHERE?
WHO?
Provided at the training centers
+ participation to meetings abroad when necessary
- experienced managers from BP, BP Centro
- external professional trainers / experts
WHAT?
- enhance corporate culture
- improve relations and communication with
franchisees
- enhance quality control management
- develop / update technological skill
- develop leadership skills
- identify future top managers
HOW?
- computer-based training (CAI, CMI)
- audiovisual methods i.e. video-conferences (costefficient)
- management games (develop pride and loyalty)
- role playing (incl. lower-skilled jobs)
91
Facility Management Training Program
• Specific policies to:
- develop company’s attractiveness and popularity
- recruit and train young managers with potential for future top management
- reinforce the commitment to TQM
• We aim to develop:
- internship programs with Business Schools, Colleges and Universities in Finland,
the Baltic countries and Russia to recruit students as Assistant to Facility Managers
- regular updating training program in computers, hygiene regulation, safety
legislation, team management…
92
Director: Marko Sarstedt
Manager: Chong Sun Tan
Miia Montonen
Team 9
Performance Appraisal
June, 2002
Agenda
•
•
•
•
Implementation – Who? – What frequency?
Sources of Appraisal.
Trait Approaches.
MBO.
94
Implementation of Performance Appraisal
CEO:
Country and Regional Managers:
• Annually
• Annually
 MBO
 Self-Appraisal
 360° Appraisal
 MBO
Area-specific Officers:
Facility Managers:
• Annually
• Annually
 360° Appraisal
 Self-Appraisal
 MBO
 MBO
• Semi-Annually
95
 Self-Appraisal
Sources of Appraisal: Self-Appraisal
• Employees evaluate themselves on a self-appraisal form.
• Performance interview to discuss job performance and agree on a
final appraisal.
Sample questions:
 What were your most important accomplishments during the appraisal period?
 What are you job-related goals for the next period?
 How can the supervisor help you in meeting future goals?
96
Sources of Appraisal: 360° Appraisal
Performance feedback is received from a full circle of people
around the employee:
Supervisor
Customer
Peer
Evaluated
Employee
Subordinate
Project
leader
Peer
Subordinate
Subordinate
97
Pros / Cons of 360° Appraisal at BP-Centro
• More Comprehensive.
+
• Higher quality of information.
• Lessened bias / prejudice.
• Increased self-development.
• Administratively complex.
• Conflicting opinions, which may be accurate
-
from specific standpoints.
• Possible collusion.
• Appraisers may not be
accountable if evaluation
anonymous.
98
Favorable Characteristics of 360° Appraisal
• Assure Anonymity
• Make respondents accountable
• Prevent collusion
• Use statistical procedures
• Identify biases
99
Trait Approaches
• Trait Approaches:
• Mixed-Standard Scale Method / Forced-Choice Method
• Not conform with Finnish culture
• Essay Method
• Time-consuming to use
• Costly
• Quality influenced by writing-skills of appraiser
• Subjective
• Graphic Rating Scale 
• Less subjective bias
100
• Degree of performance dimension
is less offensive
Example Graphic Rating Scale
C- Critically important
E – Exceeds requirements
I – Important
M – Meets requirements
N – Not appliable
O – Opportunity for development
Communication:
C
I
N
E
M O
• Listens well 

• Communicates effectively 

• Gives clear and concrete oral instructions
Decision Making:

C
I
N

E
M O
• Makes timely and effective decisions


• Considers broader impact of alternatives



• Delegates appropriately
101

MBO
Definition:
Philosophy of management on the basis of employee
achievement or goals set by mutual agreement of employees
and managers.
102
Pros / Cons of MBO at BP-Centro
• Less subjective bias
+
• Link individual performance to organizational
performance
• Mutual goal setting
• Basis for reward and promotion decisions
-
• Time consuming
• Costly
• May encourage short-term perspective
• Goals not always easy to measure
103
MBO Scheme
Formulation
of goals
Formulation
of an
action plan
Implementation
104
Interim
Review
Final
Review
Formulation of goals
• Employee and supervisor decide mutually on expectations for the employee’s
performance:
• Define roles and accountabilities, including whether they are individual,
joint or team.
• Develop objectives that are closely tied to department goals
• Clarify performance dimensions
• Set interim review dates
• Agree on who will provide supplemental input
Questions to consider:
 How can I improve my contribution to department goals?
What objectives will maximize my contribution?
 Who can help me achieve my objectives? Whom do I interact with?
105
Definition of goals (cont.)
Characteristics of Effective Goal Setting:
Specific
Results-oriented
Challenging
Task
Effort
Task
Performance
Commitment
Participation
Adapted from: Mcshane; Canadian Organizational
106
Behavior; 4th ed.; p # 79
Effective goal setting
Task Performance
High
Low
Area of
Optimal
Goal
Difficulty
Moderate
Challenging
Impossible
Goal Difficulty
Adapted from: Mcshane; Canadian Organizational
107
Behavior; 4th ed.; p # 80
MBO Example
Goal:
To deliver high standards of excellence in all services.
Objectives:
• To obtain a minimum score of 3.5 (out of 5) on all
Customer Service Evaluation forms.
108
Alejandra Padilla
Pauliina Saresma
Michael Sauer
Evelyn Wee
Team 10
Compensation
June, 2002
Compensation Objectives
1. Foster corporate culture
2. Lower employee turnover and improve productivity
3. Match employees’ future performance with organizational goals
4. Reward employees past performance
5. To remain competitive in the labour market
6. Employ and retain most talented people
7. Maintain salary equity among employees
110
Compensation Policies
1. Rate of pay is to be above or at the prevailing industry rate
2. Pay at the rate that is fair to both the employer and the employee
3. Pay raises according to MBO and merit
4. Offer sound non-financial compensation program
5. Offer incentives on the basis of individual contributions to
organizational success
6. Equal opportunities for compensation at each level
7. Pay expatriates according to their home country’s salary range
8. Pay premium to expatriates to cover the host country’s cost of
living
9. Equal Salary policy as long-term objective
111
Point System in Practise
Grade 1
CE
Grade 2
FaM
Grade 3
RM
Grade 4 Grade 5
CM
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
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
150
100
100
125
75
50
30
10
370
60
20
740
90
30
1110
120
40
1480
150
50
1850
RESPONSIBILITIES
JOB CONDITIONS
mobility
hazards
TOTAL
112
Salary schedule
Grade
1
2
3
4
5
FINLAND in Euro
Minimum Midpoint
Maximum
13,680
16,400
19,850
23,269
30,971
35,110
27,277
42,707
46,295
32,940
48,569
61,425
72,742
106,582
125,724
Grade
1
2
3
4
•Grade 1: Contract Employee
•Grade 2: Facility Managers
•Grade 3: Regional Managers
•Grade 4: Country Managers
RUSSIA
in Roubles
Minimum Midpoint
Maximum
300
559
660
512
790
970
730
1,019
1,156
929
1,369
1,732
Grade
1
2
3
4
Latvia
in Lats
Minimum Midpoint Maximum
3,100
3,720
4,464
5,817
9,200
10,013
8,333
13,047
14,143
10,592
15,618
19,752
113
•Grade 5: CEO
based on the Economist
salary comparison 2002
Compensation Policies - Model
CEO
COUNTRY
MGR
REGIONAL
MGR
FACILITY
MGR
BASE
SALARY
MERIT
BONUSES
114
STOCK
OPTIONS
INDIRECT
COMPENSATION
Factors Influencing Real Wage Rate - Finland
•Internal factors influencing wage rates: (what the job is worth)
-compensation policy (corporate)
-worth of a job
-employee relative worth
-employer ability to pay
•External factors influencing wage rates: (compared to other employees)
-labor market conditions (unemployment rate)
-cost of living
-collective bargaining (powerful unions)
-government and legal requirements
115
Factors Influencing Real Wage Rate - Baltics and Russia
• government and legal regulations
 wage rates
 working time
• cost of living (eg:inflation rate)
• competitor compensation policies
116
Indirect Compensation: USA vs. Finland
USA:
•health: medical, dental, eye wear
•insurance: life, pension
•other benefits
Finland
•benefits; health, dental etc supported by government (taxes)
•pensions paid by government
•possible: housing, car, IT equipment, optional pension plan
117
Compensations at BP Centro (indirect)
CEO
COUNTRY
MGR
REGIONAL
MGR
FACILITY
MGR
COUNTRY
CLUB
MEMBERSHIP
PENSION PLAN
CHILD CARE
118
COMPANY
CAR
CAFETERIA
PLAN
Compensations at BP Centro (non-financial)
• Food Service
• Relocation Assistance
• Special Achievement Awards
Country specifics
• Leave space for flexible handling to Country specific HRM
• Encourage different non-financial compensation
• Provide some balance for very low wages in Russia / Baltics
119
End
120