amoco presentation - indiana university bloomingtonbusx420/hrmwebsite/hrm/bpamoco/1998bba/exe… ·...

Amoco Presentation6/24/98

Revised Sliced Show

Written Report

Table of Contents

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

Author: HSE BBA

Amoco Presentation

http://www.mli.hkkk.fi/bba/hrm/amoco/1998bba/execsum/index.htm (1 of 5) [5/28/1999 1:40:07 PM]

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

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

Amoco Presentation


Skills needed for effective performance atdifferent 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 CULTURALDIFFERENCIES: TRAINING

Compensation

Compensation instruments

Compensation goals

Compensation goals cont.

Amoco Presentation


Finnish Legislation affecting Compensationand 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!

Amoco Presentation


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Amoco Presentation

http://www.mli.hkkk.fi/bba/hrm/amoco/1998bba/execsum/sld001.htm [5/28/1999 1:40:10 PM]

http://www.mli.hkkk.fi/bba/hrm/amoco/1998bba/execsum/tsld001.htm

Executive summary of

the Amoco-Finland case

For the readerThe executive summary tries to capture the most essentialinformation found during the process of Amoco-Finland. Althoughthe format may not fulfill the requirements of formal executivesummary, this page captures the data we consider the mostrelevant. After a brief summary there is a revised slide showwhich contains the aggregate and final presentation. We ask youto use this material during the video conference to avoid anyconflicts due to the revision.

Overview of the Finnish cultureFinland is an economically stable country with strong labor unionsand high unemployment. The impact of unions have kept thesalary levels relatively high despite unemployment. Governmentimposes heavy taxes on individuals as well as on companies.

The educational level is among the top countries in the world andthere is skilled labor available and people are ready for newchallenges. To some degree, the Finnish people prefer staying inFinland and need strong incentives to move abroad for work. Wedo not see this as a major concern. However, we must addressthis point to the applicants when hiring them to avoid laterproblems.

Safety wise Finland is a good place to establish an organization.There is no major concern for safety issues.

Overview of Russian and Baltic culturesRussia and Baltics have gone through many changes in the pastfew years and they are developing quickly. Our definition of theirproblems and current situation are partly assumptions, becausewe do not have on-hand experience of local customs.

We have agreed with the research team that there are verypotential markets in Eastern Europe. We also agreed that theeducational level as well as work moral, health care issues, and

Amoco executive summary

http://www.mli.hkkk.fi/bba/hrm/amoco/1998bba/execsum/report.htm (1 of 6) [5/28/1999 1:40:12 PM]

safety issues are concerns to consider.

Corporate mission and policyAmoco's mission statement and corporate culture apply to everycountry, despite the cultural differences. However, theimplementation and administration of some policies will need tobe adjusted in order to avoid conflict with the country's culture,society, laws, or political structure. Major concerns are relocatingemployees, the absence of facility manager in Finland, appraisaland compensation policies.

Amoco Finland is a gateway to Russia and Baltics. Therefore weneed to build a profitable organization which supports theexpansion to the eastern Europe. The expansion will be executed,supervised and supported by Amoco Finland. A similarorganizational structure will be implemented to Russia and Baltics.

Teams and individuals need to be committed to a long termrelationship with Amoco. Employees and organization strive forcontinuos 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 planAmoco Finland will start as a flat organization with a CEO, VPmarketing, VP Human resource, VP Logistics, and CFO. To supportthem, the starting organization includes four regional managers,Russian VP, and Baltic VP. After operations begin to expand therewill be a need to hire assistants for each department as well asregion managers. The organization in Finland does not includefacility manager due to the characteristics of Finnishentrepreneurs. It would hinder the franchisee contracts to includefacility managers in Finland. Having facility managers wouldinterfere with the way the Finns perceive entrepreneurship. Alsothe overall costs can be reduced greatly by eliminating facilitymanagers.

Our goal is to run operations in full within three to five years.Baltic and Russian operations will be closely connected to AmocoFinland and later separated to their own units.

1st year operations: Finland will establish and operate 25 facilitiesafter the first year. These facilities locate mostly in the southernFinland and will be constructed under the supervision of regionmanagers. First facilities will be established also to Baltics,although fewer than in Finland. Following the development of theFinnish organization will give experience to Baltic VP as well asgive insights of future planning. The Baltic VP is responsible for



the first franchisee and construction contracts, he/she alsosupervises the process and reports to the CEO of Finland. TheRussian VP is planning the strategy for Russia in cooperation withthe CEO of Finland and starts to negotiate franchisee andconstruction contracts. There will not be any facilities establishedin Russia during the first year.

2nd year operations: Finland has 50 operating facilities locatedclose to major cities. Number of regional managers will increaseto six and the need for their assistants will be evaluated. TheBaltic VP continues to develop operations in Baltics, hires regionalmanagers and facility managers with the Finnish HR team, andreport 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 thenumber of regional managers is ten. Concentration is directedtowards cost-efficiency and service quality. First 15 stations areoperating in Russia and over 50 in the Baltics. Baltic organizationis becoming independent from the Finnish one.

4th year operations: The Russian organization is starting tooperate independently and continues to grow all around Russia.

Job DescriptionCommon requirements for higher positions are a University leveldegree, 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 requirementsas well as the job description.

Region manager requirements also include the same basiceducational background but also concentrates more on specificskills as well. Organizational and communication skills, as well asleadership and computer skills are essential to perform the jobefficiently. Willingness to travel during weekends is alsoimportant. The facility managers, who work in Baltic and Russiaare not required to have an academic background. They are,however, expected to handle basic accounting tasks, have goodproblem solving skills, and general knowledge of business.

Suggestions for job design methods include job enlargement, jobrotation, job enrichment, and team participation techniques. Usingthese methods will improve the work environment and enhanceself-development as well as support the team spirit.

RecruitmentThe education situation in Eastern Europe will cause problems in



finding many talented employees. Therefore our company mustattract currently working managers from other companies andemployees from other countries to start the operations in EasternEurope. Later we can train new employees but we found it crucialto start with professionals.

Recruiting sources include headhunting agencies, advertising, andinternet. We suggest that the CEO and CFO are recruitedinternally, because they are already familiar with the Amocopolicies. Marketing and HR personnel should be recruitedexternally, as language skills and cultural experience are requiredfor effective results. Regional managers are planned to berecruited from national labor market, to secure familiarity withlocal customs. The facility managers are recruited from localmarket.

SelectionAmoco employees should have both managerial and interpersonalskills. The most important managerial skills required are: risktaker, analytical skills, leadership skills, organizing skills, effectivedecision-making under pressure, and goal-oriented. The requiredinterpersonal skills include: strong ethical values, extrovert personwith communication skills, capability to teamwork, and languageskills.

The Finnish CEO will be pointed out by Amoco-USA CEO. The VicePresidents are selected by the Finnish CEO with the help ofAmerican HR team. Other decisions concerning the Finnishorganization are made by the Finnish CEO with the help of HRVice President.

We also believe that not all the implemented policies in US will besuitable to employees in Europe. For example, the Finnishemployees do not tolerate continuos supervision whereas easternEurope workers must be supervised.

TrainingAll employees are given an orientation period where they arefamiliarized with the company. The training is divided into twocategories: business skills in Russia and Baltic; Amoco ethics,values, and products. Top-management will receive the basictraining 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 facilitiesand head quarter.

■



Middle management is familiarized with Baltic andRussian environment and taught the basic languageskills

■

Facility managers and franchisees need productknowledge, standards, rules and regulations, andcustomer service skills.

■

AppraisalThe goal of appraisal is to influence individual behavior, fosterself-development, and help individuals to perform as a team.Important task is also to provide information to supportcompensation, possible employee termination, and internalrecruiting decisions.

The appraisal is done by using 360 degree evaluation, whereco-workers, supervisor and employee oneself takes part in theprocess.

CompensationCompensation goals include low employee turnover rate, fostercorporate culture, and improve organization performance.Incentives address teamwork and creativity. The base salary isdetermined according the industry average. Thepay-for-performance compensation and benefit program aim toattract the best skills to join Amoco team.

Compensation policy does not conflict the values of the companybut supports them. It is also fair and manageable. Idea was tosuggest a different policy from the current so there could bediscussion how to attract the skilled people.

To Slide show

Helsinki School of Economics and BusinessAdministration



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HR OBJECTIVES AND POLICIES



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MISSION AND VALUES



http://www.amoco.com/about/mvv.htm

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MISSION AND VALUES



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OBJECTIVES



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POLICIES



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INTERNAL POLICIES



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EXTERNAL POLICIES



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http://www.mli.hkkk.fi/bba/hrm/amoco/presrpts.htm

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Organizational Structure



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Organizational Chart



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CEO



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Finance & Accounting



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Marketing



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Human Resources



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Purchases & Logistics



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Regional Manager



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Facility Managers



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Organizational Growth



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1st year planning



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Amoco Baltic



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Years 2 to 3



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Years 3 to 4



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Baltic and Russia in 5 years



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Job Description -



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Common Requirements



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CEO



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VP, Baltic



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CFO



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VP, HRM



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VP, Marketing



http://www.amoco.com/what_we_do/ss/hr/usa/jobs/mktgmgr.htm

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VP, Marketing



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VP, Logistics



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AMOCO



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Job Title: Regional Manager



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Regional Manager



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Job Title: Facility Manager



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Facility Manager



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Possibilities in Job Design



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Job Design (cont.)



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Recruitment Methods



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Job Markets



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Sources of Recruitment



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Pros & Cons



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Recommendation



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Recruitment Brochure



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Selection



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Personal Characteristics



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Selection of Top Management



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Flow of the Selection Process



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First Interview



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Background Investigation



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Psychological & Medical Test



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Final Interview



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Hiring Decision



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Training



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Training in General



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Training



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Skills needed for effective performance at different levels of management



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Number of training days needed



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Starting Operations



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Human Resources



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Top-Management



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Orientation



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Orientation cont.



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Training



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Training cont.



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PERFORMANCE APPRAISALS



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OBJECTIVES



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APPRAISAL SYSTEM



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HR FUNCTION



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PROCESS



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CULTURAL MODIFICATIONS



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SOLUTION TO THE CULTURAL DIFFERENCIES: TRAINING



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Compensation



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Compensation instruments



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Compensation goals



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Compensation goals cont.



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Finnish Legislation affecting Compensation and Benefits



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Base salary



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Pay-for-performance: incentive



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Pay-for performance: bonus



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Pay-for-performance: recognition



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Benefit program



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Benefit program cont.



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Additional information



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Thank You for Your Patience!



amoco presentation - indiana university bloomingtonbusx420/hrmwebsite/hrm/bpamoco/1998bba/exe… ·...

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