Amoco Presentation. Revised Sliced Show Written Report. Table of Contents 6/24/98. Author: HSE BBA. Amoco Presentation HR OBJECTIVES AND POLICIES

Transcription

1 Amoco Presentation Amoco Presentation 6/24/98 Revised Sliced Show Written Report Table of Contents Author: HSE BBA Amoco Presentation HR OBJECTIVES AND POLICIES MISSION AND VALUES MISSION AND VALUES OBJECTIVES OBJECTIVES POLICIES INTERNAL POLICIES EXTERNAL POLICIES EXTERNAL POLICIES Organizational Structure Organizational Chart CEO Finance & Accounting Marketing Human Resources Purchases & Logistics Regional Manager Facility Managers (1 of 5) [5/28/1999 1:40:07 PM]

2 Amoco Presentation Organizational Growth 1st year planning 1st year planning Amoco Baltic Years 2 to 3 Years 3 to 4 Baltic and Russia in 5 years Job Description - Top Management Common Requirements CEO CEO VP, Baltic VP, Baltic CFO CFO VP, HRM VP, HRM VP, Marketing VP, Marketing VP, Marketing VP, Logistics VP, Logistics VP, Logistics AMOCO Mid-Management Jobs Job Title: Regional Manager Regional Manager (2 of 5) [5/28/1999 1:40:07 PM]

3 Amoco Presentation Regional Manager Regional Manager Job Title: Facility Manager Facility Manager Possibilities in Job Design Job Design (cont.) Job Design (cont.) Recruitment Methods Job Markets Sources of Recruitment Pros & Cons Internal Recruiting Pros & Cons External Recruiting Recommendation Recruitment Brochure Selection Personal Characteristics Selection of Top Management Flow of the Selection Process First Interview Background Investigation Psychological & Medical Test Final Interview Hiring Decision Training Training in General Training (3 of 5) [5/28/1999 1:40:07 PM]

4 Amoco Presentation Skills needed for effective performance at different levels of management Number of training days needed Starting Operations Human Resources Top-Management Orientation Orientation cont. Orientation cont. Training Training Training cont. Training cont. PERFORMANCE APPRAISALS OBJECTIVES APPRAISAL SYSTEM HR FUNCTION PROCESS PROCESS PROCESS CULTURAL MODIFICATIONS SOLUTION TO THE CULTURAL DIFFERENCIES: TRAINING Compensation Compensation instruments Compensation goals Compensation goals cont. (4 of 5) [5/28/1999 1:40:07 PM]

5 Amoco Presentation Finnish Legislation affecting Compensation and Benefits Base salary Pay-for-performance: incentive Pay-for performance: bonus Pay-for-performance: recognition Benefit program Benefit program cont. Additional information Thank You for Your Patience! (5 of 5) [5/28/1999 1:40:07 PM]

6 Amoco Presentation Slide 1 of [5/28/1999 1:40:10 PM]

7 Amoco executive summary Executive summary of the Amoco-Finland case For the reader The executive summary tries to capture the most essential information found during the process of Amoco-Finland. Although the format may not fulfill the requirements of formal executive summary, this page captures the data we consider the most relevant. After a brief summary there is a revised slide show which contains the aggregate and final presentation. We ask you to use this material during the video conference to avoid any conflicts due to the revision. Overview of the Finnish culture Finland is an economically stable country with strong labor unions and high unemployment. The impact of unions have kept the salary levels relatively high despite unemployment. Government imposes heavy taxes on individuals as well as on companies. The educational level is among the top countries in the world and there is skilled labor available and people are ready for new challenges. To some degree, the Finnish people prefer staying in Finland and need strong incentives to move abroad for work. We do not see this as a major concern. However, we must address this point to the applicants when hiring them to avoid later problems. Safety wise Finland is a good place to establish an organization. There is no major concern for safety issues. Overview of Russian and Baltic cultures Russia and Baltics have gone through many changes in the past few years and they are developing quickly. Our definition of their problems and current situation are partly assumptions, because we do not have on-hand experience of local customs. We have agreed with the research team that there are very potential markets in Eastern Europe. We also agreed that the educational level as well as work moral, health care issues, and (1 of 6) [5/28/1999 1:40:12 PM]

8 Amoco executive summary safety issues are concerns to consider. Corporate mission and policy Amoco's mission statement and corporate culture apply to every country, despite the cultural differences. However, the implementation and administration of some policies will need to be adjusted in order to avoid conflict with the country's culture, society, laws, or political structure. Major concerns are relocating employees, the absence of facility manager in Finland, appraisal and compensation policies. Amoco Finland is a gateway to Russia and Baltics. Therefore we need to build a profitable organization which supports the expansion to the eastern Europe. The expansion will be executed, supervised and supported by Amoco Finland. A similar organizational structure will be implemented to Russia and Baltics. Teams and individuals need to be committed to a long term relationship with Amoco. Employees and organization strive for continuos improvement through self-development and team work. Amoco Finland will also continue the social responsibility program, where the society is important as a whole. Organization and the development plan Amoco Finland will start as a flat organization with a CEO, VP marketing, VP Human resource, VP Logistics, and CFO. To support them, the starting organization includes four regional managers, Russian VP, and Baltic VP. After operations begin to expand there will be a need to hire assistants for each department as well as region managers. The organization in Finland does not include facility manager due to the characteristics of Finnish entrepreneurs. It would hinder the franchisee contracts to include facility managers in Finland. Having facility managers would interfere with the way the Finns perceive entrepreneurship. Also the overall costs can be reduced greatly by eliminating facility managers. Our goal is to run operations in full within three to five years. Baltic and Russian operations will be closely connected to Amoco Finland and later separated to their own units. 1st year operations: Finland will establish and operate 25 facilities after the first year. These facilities locate mostly in the southern Finland and will be constructed under the supervision of region managers. First facilities will be established also to Baltics, although fewer than in Finland. Following the development of the Finnish organization will give experience to Baltic VP as well as give insights of future planning. The Baltic VP is responsible for (2 of 6) [5/28/1999 1:40:12 PM]

9 Amoco executive summary the first franchisee and construction contracts, he/she also supervises the process and reports to the CEO of Finland. The Russian VP is planning the strategy for Russia in cooperation with the CEO of Finland and starts to negotiate franchisee and construction contracts. There will not be any facilities established in Russia during the first year. 2nd year operations: Finland has 50 operating facilities located close to major cities. Number of regional managers will increase to six and the need for their assistants will be evaluated. The Baltic VP continues to develop operations in Baltics, hires regional managers and facility managers with the Finnish HR team, and report to the CEO of Finland. The number of stations will be close to 30. In Russia, the first stations are opened. 3rd year operations: All 100 stations operate in Finland and the number of regional managers is ten. Concentration is directed towards cost-efficiency and service quality. First 15 stations are operating in Russia and over 50 in the Baltics. Baltic organization is becoming independent from the Finnish one. 4th year operations: The Russian organization is starting to operate independently and continues to grow all around Russia. Job Description Common requirements for higher positions are a University level degree, several years of experience in the field of the position, fluency of English, and long term commitment to the company. The slide show defines individual and more specified requirements as well as the job description. Region manager requirements also include the same basic educational background but also concentrates more on specific skills as well. Organizational and communication skills, as well as leadership and computer skills are essential to perform the job efficiently. Willingness to travel during weekends is also important. The facility managers, who work in Baltic and Russia are not required to have an academic background. They are, however, expected to handle basic accounting tasks, have good problem solving skills, and general knowledge of business. Suggestions for job design methods include job enlargement, job rotation, job enrichment, and team participation techniques. Using these methods will improve the work environment and enhance self-development as well as support the team spirit. Recruitment The education situation in Eastern Europe will cause problems in (3 of 6) [5/28/1999 1:40:12 PM]

10 Amoco executive summary finding many talented employees. Therefore our company must attract currently working managers from other companies and employees from other countries to start the operations in Eastern Europe. Later we can train new employees but we found it crucial to start with professionals. Recruiting sources include headhunting agencies, advertising, and internet. We suggest that the CEO and CFO are recruited internally, because they are already familiar with the Amoco policies. Marketing and HR personnel should be recruited externally, as language skills and cultural experience are required for effective results. Regional managers are planned to be recruited from national labor market, to secure familiarity with local customs. The facility managers are recruited from local market. Selection Amoco employees should have both managerial and interpersonal skills. The most important managerial skills required are: risk taker, analytical skills, leadership skills, organizing skills, effective decision-making under pressure, and goal-oriented. The required interpersonal skills include: strong ethical values, extrovert person with communication skills, capability to teamwork, and language skills. The Finnish CEO will be pointed out by Amoco-USA CEO. The Vice Presidents are selected by the Finnish CEO with the help of American HR team. Other decisions concerning the Finnish organization are made by the Finnish CEO with the help of HR Vice President. We also believe that not all the implemented policies in US will be suitable to employees in Europe. For example, the Finnish employees do not tolerate continuos supervision whereas eastern Europe workers must be supervised. Training All employees are given an orientation period where they are familiarized with the company. The training is divided into two categories: business skills in Russia and Baltic; Amoco ethics, values, and products. Top-management will receive the basic training in the first two weeks in the US head quarter. Afterwards, these will be the people to implement the policies in Finland. Training is done in three levels: Top-management has external courses, visits facilities and head quarter. (4 of 6) [5/28/1999 1:40:12 PM]

11 Amoco executive summary Middle management is familiarized with Baltic and Russian environment and taught the basic language skills Facility managers and franchisees need product knowledge, standards, rules and regulations, and customer service skills. Appraisal The goal of appraisal is to influence individual behavior, foster self-development, and help individuals to perform as a team. Important task is also to provide information to support compensation, possible employee termination, and internal recruiting decisions. The appraisal is done by using 360 degree evaluation, where co-workers, supervisor and employee oneself takes part in the process. Compensation Compensation goals include low employee turnover rate, foster corporate culture, and improve organization performance. Incentives address teamwork and creativity. The base salary is determined according the industry average. The pay-for-performance compensation and benefit program aim to attract the best skills to join Amoco team. Compensation policy does not conflict the values of the company but supports them. It is also fair and manageable. Idea was to suggest a different policy from the current so there could be discussion how to attract the skilled people. To Slide show Administration Helsinki School of Economics and Business (5 of 6) [5/28/1999 1:40:12 PM]

12 Amoco executive summary (6 of 6) [5/28/1999 1:40:12 PM]

13 HR OBJECTIVES AND POLICIES Slide 2 of [5/28/1999 1:40:13 PM]

14 MISSION AND VALUES Slide 3 of [5/28/1999 1:40:14 PM]

15 MISSION AND VALUES Slide 4 of [5/28/1999 1:40:16 PM]

16 OBJECTIVES Slide 5 of [5/28/1999 1:40:17 PM]

17 Slide 6 of [5/28/1999 1:40:18 PM]

18 POLICIES Slide 7 of [5/28/1999 1:40:20 PM]

19 INTERNAL POLICIES Slide 8 of [5/28/1999 1:40:21 PM]

20 EXTERNAL POLICIES Slide 9 of [5/28/1999 1:40:22 PM]

21 Slide 10 of [5/28/1999 1:40:23 PM]

22 Organizational Structure Slide 11 of [5/28/1999 1:40:25 PM]

23 Organizational Chart Slide 12 of [5/28/1999 1:40:26 PM]

24 CEO Slide 13 of [5/28/1999 1:40:27 PM]

25 Finance & Accounting Slide 14 of [5/28/1999 1:40:28 PM]

26 Marketing Slide 15 of [5/28/1999 1:40:30 PM]

27 Human Resources Slide 16 of [5/28/1999 1:40:31 PM]

28 Purchases & Logistics Slide 17 of [5/28/1999 1:40:32 PM]

29 Regional Manager Slide 18 of [5/28/1999 1:40:34 PM]

30 Facility Managers Slide 19 of [5/28/1999 1:40:35 PM]

31 Organizational Growth Slide 20 of [5/28/1999 1:40:36 PM]

32 1st year planning Slide 21 of [5/28/1999 1:40:37 PM]

33 1st year planning Slide 22 of [5/28/1999 1:40:39 PM]

34 Amoco Baltic Slide 23 of [5/28/1999 1:40:40 PM]

35 Years 2 to 3 Slide 24 of [5/28/1999 1:40:41 PM]

36 Years 3 to 4 Slide 25 of [5/28/1999 1:40:42 PM]

37 Baltic and Russia in 5 years Slide 26 of [5/28/1999 1:40:44 PM]

38 Job Description - Slide 27 of [5/28/1999 1:40:45 PM]

39 Common Requirements Slide 28 of [5/28/1999 1:40:46 PM]

40 CEO Slide 29 of [5/28/1999 1:40:47 PM]

41 CEO Slide 30 of [5/28/1999 1:40:49 PM]

42 VP, Baltic Slide 31 of [5/28/1999 1:40:50 PM]

43 VP, Baltic Slide 32 of [5/28/1999 1:40:51 PM]

44 CFO Slide 33 of [5/28/1999 1:40:52 PM]

45 CFO Slide 34 of [5/28/1999 1:40:54 PM]

46 VP, HRM Slide 35 of [5/28/1999 1:40:55 PM]

47 VP, HRM Slide 36 of [5/28/1999 1:40:56 PM]

48 VP, Marketing Slide 37 of [5/28/1999 1:40:57 PM]

49 VP, Marketing Slide 38 of [5/28/1999 1:40:59 PM]

50 VP, Marketing Slide 39 of [5/28/1999 1:41:00 PM]

51 VP, Logistics Slide 40 of [5/28/1999 1:41:01 PM]

52 VP, Logistics Slide 41 of [5/28/1999 1:41:03 PM]

53 VP, Logistics Slide 42 of [5/28/1999 1:41:04 PM]

54 AMOCO Slide 43 of [5/28/1999 1:41:05 PM]

55 Job Title: Regional Manager Slide 44 of [5/28/1999 1:41:06 PM]

56 Regional Manager Slide 45 of [5/28/1999 1:41:08 PM]

57 Regional Manager Slide 46 of [5/28/1999 1:41:09 PM]

58 Regional Manager Slide 47 of [5/28/1999 1:41:10 PM]

59 Job Title: Facility Manager Slide 48 of [5/28/1999 1:41:12 PM]

60 Facility Manager Slide 49 of [5/28/1999 1:41:13 PM]

61 Possibilities in Job Design Slide 50 of [5/28/1999 1:41:14 PM]

62 Job Design (cont.) Slide 51 of [5/28/1999 1:41:15 PM]

63 Job Design (cont.) Slide 52 of [5/28/1999 1:41:17 PM]

64 Recruitment Methods Slide 53 of [5/28/1999 1:41:18 PM]

65 Job Markets Slide 54 of [5/28/1999 1:41:19 PM]

66 Sources of Recruitment Slide 55 of [5/28/1999 1:41:20 PM]

67 Pros & Cons Slide 56 of [5/28/1999 1:41:21 PM]

68 Pros & Cons Slide 57 of [5/28/1999 1:41:23 PM]

69 Recommendation Slide 58 of [5/28/1999 1:41:24 PM]

70 Recruitment Brochure Slide 59 of [5/28/1999 1:41:25 PM]

71 Selection Slide 60 of [5/28/1999 1:41:26 PM]

72 Personal Characteristics Slide 61 of [5/28/1999 1:41:28 PM]

73 Selection of Top Management Slide 62 of [5/28/1999 1:41:29 PM]

74 Flow of the Selection Process Slide 63 of [5/28/1999 1:41:30 PM]

75 First Interview Slide 64 of [5/28/1999 1:41:31 PM]

76 Background Investigation Slide 65 of [5/28/1999 1:41:33 PM]

77 Psychological & Medical Test Slide 66 of [5/28/1999 1:41:34 PM]

78 Final Interview Slide 67 of [5/28/1999 1:41:35 PM]

79 Hiring Decision Slide 68 of [5/28/1999 1:41:36 PM]

80 Training Slide 69 of [5/28/1999 1:41:38 PM]

81 Training in General Slide 70 of [5/28/1999 1:41:39 PM]

82 Training Slide 71 of [5/28/1999 1:41:40 PM]

83 Skills needed for effective performance at different levels of management Slide 72 of [5/28/1999 1:41:41 PM]

84 Number of training days needed Slide 73 of [5/28/1999 1:41:43 PM]

85 Starting Operations Slide 74 of [5/28/1999 1:41:44 PM]

86 Human Resources Slide 75 of [5/28/1999 1:41:45 PM]

87 Top-Management Slide 76 of [5/28/1999 1:41:46 PM]

88 Orientation Slide 77 of [5/28/1999 1:41:48 PM]

89 Orientation cont. Slide 78 of [5/28/1999 1:41:49 PM]

90 Orientation cont. Slide 79 of [5/28/1999 1:41:50 PM]

91 Training Slide 80 of [5/28/1999 1:41:51 PM]

92 Training Slide 81 of [5/28/1999 1:41:53 PM]

93 Training cont. Slide 82 of [5/28/1999 1:41:54 PM]

94 Training cont. Slide 83 of [5/28/1999 1:41:55 PM]

95 PERFORMANCE APPRAISALS Slide 84 of [5/28/1999 1:41:56 PM]

96 OBJECTIVES Slide 85 of [5/28/1999 1:41:58 PM]

97 APPRAISAL SYSTEM Slide 86 of [5/28/1999 1:41:59 PM]

98 HR FUNCTION Slide 87 of [5/28/1999 1:42:00 PM]

99 PROCESS Slide 88 of [5/28/1999 1:42:02 PM]

100 PROCESS Slide 89 of [5/28/1999 1:42:03 PM]

101 PROCESS Slide 90 of [5/28/1999 1:42:04 PM]

102 CULTURAL MODIFICATIONS Slide 91 of [5/28/1999 1:42:06 PM]

103 SOLUTION TO THE CULTURAL DIFFERENCIES: TRAINING Slide 92 of [5/28/1999 1:42:07 PM]

104 Compensation Slide 93 of [5/28/1999 1:42:08 PM]

105 Compensation instruments Slide 94 of [5/28/1999 1:42:09 PM]

106 Compensation goals Slide 95 of [5/28/1999 1:42:11 PM]

107 Compensation goals cont. Slide 96 of [5/28/1999 1:42:12 PM]

108 Finnish Legislation affecting Compensation and Benefits Slide 97 of [5/28/1999 1:42:13 PM]

109 Base salary Slide 98 of [5/28/1999 1:42:14 PM]

110 Pay-for-performance: incentive Slide 99 of [5/28/1999 1:42:16 PM]

111 Pay-for performance: bonus Slide 100 of [5/28/1999 1:42:17 PM]

112 Pay-for-performance: recognition Slide 101 of [5/28/1999 1:42:18 PM]

113 Benefit program Slide 102 of [5/28/1999 1:42:20 PM]

114 Benefit program cont. Slide 103 of [5/28/1999 1:42:21 PM]

115 Additional information Slide 104 of [5/28/1999 1:42:22 PM]

116 Thank You for Your Patience! Slide 105 of [5/28/1999 1:42:23 PM]