BP-CENTRO FINLAND CASE

Human Resource
Management Plan

June, 2003
AGENDA

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. Objectives and Policies

2. Organization Structure
3. Requirements Planning
4. Job Description - Management
5. Job Description Operations
6. Recruitment Methods
7. Selection Report
8. Training
9. Performance Appraisal
10. Compensation and Benefits
HRM PLAN AREAS

1. Objectives and Policies

2. Organization Structure
3. Requirements Planning
4. Job Description - Management
5. Job Description Operations
6. Recruitment Methods
7. Selection Report
8. Training
9. Performance Appraisal
10. Compensation and Benefits
AGENDA

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.

Weare 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 companys 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

Buildexcellence 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. Requirements Planning
4. Job Description - Management
5. Job Description Operations
6. Recruitment Methods
7. Selection Report
8. Training
9. Performance Appraisal
10. Compensation and Benefits
AGENDA
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
Headquarters 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

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. Job Description - Management
5. Job Description Operations
6. Recruitment Methods
7. Selection Report
8. Training
9. Performance Appraisal
10. 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
Supply
CEO and Vice-presidents
Experience workers from
1 Country manager the mother company
2 Regional managers Recruiting outside the
organization
6 Facility managers
30 Assistant facility managers
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 Supply
Employees for new Mainly employees from
complex in Finland
old complex
Employees for new
Entrpreneurs from Finland
complex in baltics and
Russia 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 Country Man. Reg. Man. Fac. Man. Fac. Ass.
FINLAND: 1 1 2 6 30
2-4 1 6 20 100
BALTIC: 24 3 3 9 45
5+ 3 8 24 120
RUSSIA: 24 1 4 12 60
5+ (2) 16 48 240
E. EUROPE: 5 + 8 22 66 330
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. Job Description Operations
6. Recruitment Methods
7. Selection Report
8. Training
9. Performance Appraisal
10. Compensation and Benefits
TOP MANAGEMENT LEVEL

CEO

VP Finance VP Human
Resource VP Marketing VP Operations
COMMON REQUIREMENTS
Masters 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
Masters degree in finance
Ensure balance of companys financial structure
Provide financial reports to CEO and BPO Corp (UK).
VP Human Resource

Requirements & Responsibilities

>5 years related work experience
Masters 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 masters degree
Responsible of developing business concept
Significant knowledge of customs, transportation
and distribution channels
Forecast demand of BPs products
VP MARKETING

Requirements & Responsibilities

>5 years related work experience
Masters degree in marketing
Create annual marketing plan and budget
Forecast future market trends
Ability to be creative
HRM PLAN AREAS

1. Objectives and Policies

2. Organization Structure
3. Requirements Planning
4. Job Description - Management
5. Job Description Operations
6. Recruitment Methods
7. Selection Report
8. Training
9. Performance Appraisal
10. Compensation and Benefits
AGENDA

Organizational Chart

Job Responsibilities

Job Requirements

Job Design

Brief Summary
ORGANIZTIONAL CHART
COUNTRY MANAGER

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 Mgrs
Uniformity of centers
Implementation of marketing strategy
REGIONAL MANAGER (CONT)

Support, monitor & supervise the Facility

mgrs 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

Reportsto Regional Manager

Responsible for own facility & monitoring the
sites
Implements strategys 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
Masters 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

Bachelors 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. Objectives and Policies

2. Organization Structure
3. Requirements Planning
4. Job Description - Management
5. Job Description Operations
6. Recruitment Methods
7. Selection Report
8. Training
9. Performance Appraisal
10. 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 Locating from outside

the company 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 companys culture
comprehensive knowledge about this position and the
companys 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. Objectives and Policies

2. Organization Structure
3. Requirements Planning
4. Job Description - Management
5. Job Description Operations
6. 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

e.g MBTI
Employment classification
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

most important step
Identify
will do and can do factor
Approach taken
clinical approach
Finaldecision based on all steps of the
selection process
Done by HQ
SELECTION PROCESS TASKS: FUNCTIONAL, COUNTRY and
REGIONAL MANAGERS
Positions
Application Screening Outsourced

Initial Interview Outsourced

Employment Tests Outsourced

Background Investigation Outsourced
Preliminary Selection Outsourced
Supervisory Interview HQ
Medical Examination Outsourced
Hiring Decision HQ
SELECTION SCHEDULE

Position Selection done by

CEO BPO Headquarters

VPs CEO and UK HQ
CM HR department of Finnish HQ
RM HR Department of Finnish HQ & hiring manager
FM Regional HR Department & hiring manager
AFM 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
applicants 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. Objectives and Policies

2. Organization Structure
3. Requirements Planning
4. Job Description - Management
5. Job Description Operations
6. Recruitment Methods
7. 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

Testresults 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. Objectives and Policies

2. Organization Structure
3. Requirements Planning
4. Job Description - Management
5. Job Description Operations
6. Recruitment Methods
7. Selection Report
8. 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 Other purposes:

Purposes: they provide Promotion
input that can be used Transfer
for the entire range of
HRM activities (ex.
Layoff decisions
Compensation Possible legal action
decisions).
PURPOSES OF PERFORMANCE
APPRAISAL

Developmental Other purposes:

Purposes: they provide
the feedback essential
for discussing strengths
and weaknesses as
well as improving
performance.
issues for discussion
eliminating problems
setting new goals
training
growth plans
THE BOTTOM LINE

P e r fo r m a n c e
A p p r a is a l
P ro g ra m

D o c u m e n t a t io n S a la r y A d m in is t r a t io n P e r fo r m a n c e
' 'p a p e r t r a i l '' a n d r e c o m m e n d a tio n s F e e db a ck

M e e tin g le g a l P r o m o t io n S tre n g h ts a n d
r e q u ir e m e n ts W eaknesses

M o t iv a t o r f o r e m p lo y e e s T r a in in g

I n d iv id u a l
Organizational im p ro v e m e n t

improvement
Bp-Centro
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 CONTD

Behavioral Methods
Critical Incident Method
Behavioral Checklist Method
Behaviorally Anchored Rating Scale (BARS)
Behavior Observation Scales Systems (BOSS)>BP-
Centro
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 (BP-
CENTRO), 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 - Organizations common goals.

Finance, Marketing, HR,

Logistics managers
Departments specific goals

Country, regional, facility and Country, regional, facility and

assistant facility manager lists assistant facility manager
goals and measures for proposes goals and measures for
subordinate his or her job

Joint agreement on goals New input provided

Review of organization
performance Review period providing
feedback on results measures Inappropriate goals
against establish 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
WHATS 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 represents almost always 95-100% of the time /promotion possibility

4 represents frequently 85-94% of the time
3 represents sometimes 75-84% of the time / training
2 represents seldom 65-74% of the time
1 represents almost never 0-64% of the time

Job Performance almost never almost always

1. Performs the job requirements 1 2 3 4 5

2. Motivates other employees 1 2 3 4 5
3. Focuses on key growth areas 1 2 3 4 5
4. Runs promotion events 1 2 3 4 5
5.Formulates and meets everyday goals 1 2 3 4 5
6. Follows up on customer leads 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

P e r fo r m a n c e
A p p r a is a l
P ro g ra m

D o c u m e n t a t io n S a la r y A d m in is t r a t io n P e r fo r m a n c e
' 'p a p e r t r a i l '' a n d r e c o m m e n d a tio n s F e e db a ck

M e e tin g le g a l P r o m o t io n S tre n g h ts a n d
r e q u ir e m e n ts W eaknesses

M o t iv a t o r f o r e m p lo y e e s T r a in in g

I n d iv id u a l
Organizational im p ro v e m e n t

improvement
Bp-Centro
HRM PLAN AREAS

1. Objectives and Policies

2. Organization Structure
3. Requirements Planning
4. Job Description - Management
5. Job Description Operations
6. Recruitment Methods
7. Selection Report
8. Training
9. Performance Appraisal
10. 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

Internalfactors
BPOs compensation policy
Worth of a job job evaluation
Employees relative worth in meeting job
requirements
BPOs 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 jobs 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 organizations
relevant market.
Job evaluation & wage-survey data used jointly to to link the
likelihood of both internal and external equity.
POINT SYSTEM

Grade 1 Grade 2 Grade 3 Grade 4 Grade 5

AFM FaM RM FuM CM CEO
SKILLS
communication 30 60 90 120 120 150
interpersonal 30 60 90 120 120 150
language 10 20 30 40 40 50
computer 5 10 15 20 20 25
leadership 25 50 75 100 100 125
contract 5 10 15 20 20 25
teamwork 20 40 60 80 80 100
working experience 25 50 75 100 100 125
education 25 50 75 100 100 125
problem solving 20 40 60 80 80 100
stress management 15 30 45 60 60 75

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

JOB CONDITIONS
mobility 30 60 90 120 120 150
hazards 10 20 30 40 40 50
TOTAL 370 740 1110 1480 1480 1850
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

Finland Russia Baltics

Grade 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

20000

15000
Salary

10000

5000
0
1 2 3 4 5
Grade
RECOMMENDED COMPENSATION
MODEL

Stock Pension Cell

Option Plan Merits Bonus Car Phone
C.E.O. yes option yes yes yes yes
Country Manager yes option yes yes yes yes
Functional Manager yes option yes yes yes yes
Regional Manager yes option yes yes option yes
Facility Manager yes option yes yes option yes
Ass. Facility Manager 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 companys 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 companys store
BRIEF SUMMARY
A strategic compensation plan for employees that enhance
motivation & growth, as well as aligning their efforts with BPOs
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 youd like
to ask?