4-jun-07 president vice-presidentfinancial director production business development department...
TRANSCRIPT
4-Jun-07 www.terminal.kz
President
Vice-President Financial Director
ProductionBusiness development
department
HR-departmentLegal
departmentPresident’s
administration
Accounts devision
Chief AccountantChief Accountant deputyAc-t by incomeAccountantAccountant-cashierAc-t by taxes
Financial analyst
Head of expedi-tion department
Reg. man-r. byAlmaty
DirectorAtyrau subsidiary
DirectorAktau subsidiary
Manager of the PTB in Aktau
Transportationdepartment
Manager of the hotel
RepresentativeOffice in Astana
Chapter I
The Structure of the Company
4-Jun-07 www.terminal.kz
Strategy
Multiplanning management
Project management and configuration of a product
Work of executors over the set tasks
Shareholders
General Director
Department Director
Coordinator (manager) of a project
Analyst, programmer, specialist…
Management by the program and portfolio of the project. Investments management.
Management by priorities of executing projects,
planning of bargains.
Management by the team of the project
and configuration
Execution of tasks
Other activity
Scheme of strategic planning in realization of planning management
Chapter II
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Level 1. Supporting one project
Level 2. Supporting several projects within one program
Level 3. Supporting projects of the whole department or the branch of an organization
Level 4. Supporting all the projects in the organization
Level 5. Strategic unit, formed on the level of executive government and realizing the support of strategic solutions and distribution of resources within the scales of the enterprise
Levels of a company's maturity.
Chapter II
4-Jun-07 www.terminal.kz
• Newly accepted employees start giving feedback very quickly, that is connected with simplicity of technology and correspondingly with a short period of training. Here can be given examples of franchising organizations (exactly in that comprehension in which they were formed in our country) – Gerbalife, Chinese medicinal herbs and other products for growing thin.
• Employees with experiences of work and knowledge of the organization are less valuable than newcomers. Examples can be spheres of services – cafes, restaurants, resorts. More young personnel can be attractive for clients, despite moral principles laid in the society. • When a loss of employees with experiences does not threaten for the organization. The example: MacDonalds and other ‘fast foods’. In this case the turnover is something usual and routine. As the main manpower are young employees, students, part-time employees working up and earning additionally at the time free of studies.
• When the market of specialists with demanded for a firm qualification is overfilled and their demands leave behind the supply. The example: Hollywood.
Positive sides of personnel turnover:
Chapter II
4-Jun-07 www.terminal.kz
• Lowering the quality of products. It reveals without an exception at all types of enterprise, branches of economics and sectors as of industrial as of production sectors. A specialist with experience of work always fulfills his work more qualitatively.
• High index in production costs. Along with lowering the quality, raises the index of production costs, which is connected with as the reduction of production as the increase of defective goods and the usage of raw materials.
• At industrial enterprises is raising the level of waste products and deterioration of ecologic indices of the enterprise.
• In financial world the presence of high level of personnel turnover is the evidence of low level of management in a company that negatively influences on the image and reputation of the company. Imagine yourself an investment bank, in which the level of personnel turnover comprises more 30-40%. Above it was mentioned that exactly a human factor is the main one in such type of companies. How great are chances of such bank to get a serious and important client? Perhaps, not great. And left employees present themselves a hidden threat as they posses huge volume of information, ties, contacts. Competing companies would like to get hold of such valuable employees with pleasure. • New expenses of a company, connected with search of new employees, their training, adaptation at a new place.
Negative sides of personnel turnover:
Chapter II
4-Jun-07 www.terminal.kz
1st quarter 2nd quarter 3rd quarter 4th quarter Per year
In the whole company 23 24 27 24 98
Top-management - - - - -
Average management - - - 1 1
Linear management 3 1 3 - 7
Key workers 2 8 7 5 22
Specialists 18 15 17 18 78
Example of the table on monitoring of personnel turnover:
Chapter II
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The main process of motivation:
NECESSITIES MOTIVES REWARD
Chapter II
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Power of Motivation F =Σ valencies* *of expectations
Expectations
Result 1
Result 2
Results of the first
level Result 1а
Result 1b
Result 2а
Result 2b
Instrumentality
Results of the second
level
Theory of expectation or theory of Vroom in labor theory of motivation
Chapter II
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The level of labor productivity in LLP “Firm Terminal”, thsd tenge/person
3,400.3
3,593.2
3,711.8
3,548.3
3,200
3,250
3,300
3,350
3,400
3,450
3,500
3,550
3,600
3,650
3,700
3,750
2003 2004 2005 2006
Chapter III
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Dynamics of personnel turnover in LLP “Firm Terminal”
31
39
46
34
22
0
5
10
15
20
25
30
35
40
45
50
1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007
Chapter III
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y = 1.5417x4 - 18.417x3 + 71.458x2 - 100.58x + 77
0
5
10
15
20
25
30
35
40
45
50
0 1 2 3 4 5 6
Series1
Poly. (Series1)
Line of trend for data of personnel turnover
Chapter III
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Chapter III
Category Number of filled questionnaires
Number of filled tests
Almaty 29 24% 30 25%
Aktau 25 21% 17 14%
Atyrau 16 13% 27 23%
Aktyubinsk 5 4% 7 6%
Department of Transport 24 20% 18 15%
Production Technical Base 21 18% 20 17%
TOTAL 120 100% 119 100%
Number of employees that have taken part in the poll:
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6546
9
till 1 year since 1 year till 5 years over 5 years
The structure of a Company`s employees according the experience of work in “Firm Terminal” LLP:
Chapter III
4-Jun-07 www.terminal.kz
№ Company yes noFind
difficult in replying
Did not reply
25Do you consider it to be normal - the delays outside working hours if there is presence of urgent work?
72-60% 30-25% 2-2% 16-13%
26Does your job negatively influence your personal life?
30-25% 76-63% 9-8% 5-4%
28Do the functions performed by you correspond to the functions defined by the job description?
73-61% 21-18% 14-12% 12-10%
29Do you consider that the payment for the job corresponds to the volume of the work executed by you?
25-21% 68-57% 18-15% 9-8%
32
Are you satisfied with the equipping of your working place (please, estimate the presence of office equipment, program products, means of communication, information and etc.)?
60-50% 40-33% 6-5% 14-12%
Satisfaction of employees by their work :
Chapter IV
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№ Question Yes No Find difficult in replying
Did not reply
21Are there often in the company happened conflicts between employees (in administration, between employees and managers)?
3-3% 78-65% 24-20% 15-12%
22 Do employees support relations outside the work? 100-83% 1-1% 14-12% 5-4%
24Do employees of the structural subdivision, where you work, like to be in the staff, to participate in joint actions, to spend pastime together?
97-81% 2-2% 17-14% 4-3%
31Have you ever participated in events for elaboration of development plans of the subdivision/the company, improvement of work in the subdivision and etc.?
34-28% 69-58% 11-9% 6-5%
34
In your subdivision there is existed equal and fair distributions of additional weal and privileges, granted by the Company (for example, usage by employees of the official transport or official equipment for personal aims and etc.)
24-20% 66-55% 22-18% 8-7%
35Do you feel as a member of the united team, the opinion of whom is considered?
85-71% 11-9% 18-15% 6-5%
40Have you ever noticed that there exists divergence between words of your direct manager and his practical actions?
16-13% 44-37% 47-39% 13-11%
42If you stopped working in the Company for some reason or other, would you strive to come back?
21-18% 26-22% 54-45% 19-15%
43Is it accepted among employees of the company/the subdivision to help each other in work?
107-89% 0 4-3% 9-8%
Psychological climate in the staff:
Chapter IV
4-Jun-07 www.terminal.kz
№ Question Yes No Find difficult in replying
Did not reply
23Does the company’s management orient for the opinions of employees while taking decisions?
37-31% 14-12% 57-48% 12-10%
31
Have you ever participated in events for elaboration of development plans of the subdivision/the company, improvement of work in the subdivision and etc.?
34-28% 69-58% 11-9% 6-5%
46Can any employee freely express critical opinion about the company`s actions?
42-35% 23-19% 43-36% 12-10%
Only managers reply
Responsibility is equally distributed among employees
Did not reply
45
In your opinion, only managers are responsible for results in the company or the responsibility is equally distributed among employees?
21-18% 75-63% 24-20%
Involvement of employees into processes of taking decisions:
Chapter IV
4-Jun-07 www.terminal.kz
№ Question Replied Did not reply
36
Please ,point at the encouragement which would be important for you for special achievements (can be chosen up to 3 (three) variants of replies):
premiums 99-83%
9-8%
promotion up the career 36-30%
admittance of the his associates 18-15%
souvenirs, gifts 7-6%
tickets for entertaining or sportive institutions/payment for dinner in a restaurant
12-10%
additional training 46-38%
public approval, praise 5-4%
board of honors 0
other variant
good attitude, "thank you",
a place to a sanatorium or tourist
centre
More preferable ways of motivation:
Chapter IV
4-Jun-07 www.terminal.kz
№ Question Replied No reply
47What is the attitude in the staff towards the appearance of a new employee?
positively (normal , good, friendly) 90-75%
19-14%
suspiciously, with distrust 6-5%
in no way 2-2%
in different ways 3-3%
I don't know 1-1%
48How quickly is a new employee adapted (becoming “theirs”)?
quickly (at once or during a month) 44-37%
25-20%It depends on a person 44-37%
I don't know 2-3 months 2-2% 5-4%
49Is there existed any responsible person for the adaptation of a new employee?
yes 2-19%
16-13%no 63-53%
I don't know 18-15%
50How is it accepted to present a new employee to the staff?
at a ???? 55-46%
29-24%is lead to office rooms 25-21%
in no way 4-3%
I don`t know 7-6%
51Are there existed any special programs for adaptation of new employees?
yes 4-3%
22-18%no 56-47%
I don't know 37-31%
special programs are not needed 1-1%
Attitude towards new employees in LLP “Firm Terminal”:
Chapter IV
4-Jun-07 www.terminal.kz
Company 207 employees
Turnover 15% in a quarter 31 employees
Average salary of one employee 600 USD
Cost of replacement of one employee 2 000 USD
Sum of expenses for personnel replacement in a quarter 62 000 USD
In turnover reduction to 4% 23 employees
Sum of expenses for personnel replacement in a quarter in turnover 10% 46 000 USD
Total economy 16 000 USD
Defining economic damage, received from the process of personnel turnover in LLP “Firm Terminal”
Chapter IV
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Evident expenses «Hidden» expenses
An Old employee:- the last salary and bonuses- payment of holidays - privileges, preserving at the employee A New employee :- applying ads for vacancies or payment of services for recruitment agency - conducting interview - estimation - check-up recommendations - salary- adaptation - training
- lowering of productivity because of deterioration of psychological climate in the staff
- final interview - organization of the process of search and selection, adaptation of a new employee - loss of base of knowledge and of human capital
- loss of clients - chain of dismissals
Expenses, connected with dismissal of employees
Chapter IV
4-Jun-07 www.terminal.kz
The effective system of personnel turnover management in LLP “Firm Terminal in the realization of planning management
Singling out the projects of the
company
Making up projects portfolio and constructing
a signal card of the projects` riskiness
Defining a coordinator and a group of
responsible persons for the
project execution
Introduction of the process approach
in projects management
Motivational stimulation
and introduction of new systems of quality
management, limiting
personnel turnover
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Chapter V
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The structure of “Investment Fund of Kazakhstan” as an Example of matrix structure of management
Chapter V
Chairman of the Board
Vice-chairman of the Board – members of the Board
Members of the Board
Managing directors
Apparatus of the Chairman of the Board
Adviser Press-secretary
Assistant
Structural subdivisions
Fund Management
A c
entr
e of
in
form
atio
n pr
oces
sion
Man
agem
ent o
f in
vest
men
t pr
ojec
ts #
1
(AP
C)
Man
agem
ent o
f in
vest
men
t pr
ojec
ts #
2 (
cons
truc
tion
m
ater
ials
)
Man
agem
ent o
f in
vest
men
t pro
ject
s #
3 (m
etal
lurg
y, c
hem
istr
y,
mec
hani
cal e
ngin
eeri
ng)
Man
agem
ent o
f in
vest
men
t pro
ject
s #
4 (i
nter
-bra
nch
proj
ects
)
Man
agem
ent o
f in
vest
men
t pro
ject
s #
5 (i
nfra
stru
ctur
al p
roje
cts)
Dep
artm
ent o
f an
alys
is o
f pr
ojec
t es
tim
ates
Dep
artm
ent o
f st
ruct
ural
fi
nanc
ing
Juri
dica
l de
part
men
t
Dep
artm
ent o
f st
rate
gic
anal
ysis
, sta
tist
ics
and
esti
mat
es o
f as
sets
Dep
artm
ent o
f m
onit
orin
g an
d au
dit
Fin
anci
al a
dmin
istr
ativ
e de
part
men
t
Sec
urit
y se
rvic
e
Rep
rese
ntat
ive
offi
ce
in A
stan
a ci
ty
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Certification
Phyto sanitarian
Certificate of security
Certificate of conformity
Transportation and local delivery
Auto transport
Railway transport
Air transport
Forwarding
Calculation of transportation cost
Following wagons
Account with railway
Customs-logistic services
Customs clearance
CCD
DCD
PoD
CCV
SFD
Warehousing
Capital storehouse
Open-air ground
In containers
Transports
Unloading and loading
Work with goods
Acceptance of load
Insurance of load
Loading/unloading
By auto loads
By air loads
By railway loads
Cleansing of load
Registration of documents
Classification of customs-logistic services and business-processes in LLP “Firm Terminal”
Chapter V
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Project
Employee 1 Employee 2 Employee N
Process 1
Process 2
Process …
Process N
Indexes
R
R
R
I P
P
P
I
I
II
I
Functional-role matrix of a separate project
Chapter V
4-Jun-07 www.terminal.kz
QUALITY MANAGEMENT SYSTEM IN PLANNING MANAGEMENT:
Principle “Leadership of management” Principle “Process approach” Principle “Systematic approach” Principle “Involvement of personnel into QMS” Principle “Orientation at a consumer” Principle “Relations with suppliers” Principle “Taking decisions, based on facts” Principle “Constant analysis, measurement and improvement”
Chapter V
4-Jun-07 www.terminal.kz
Type of solution Aims
Concrete subprograms of actions Strategic Tactical
1.Selection, placing and promotion of personnel in LLP “Firm Terminal”
Advancing qualificationof the acting personnel by means of training for achieving a necessary position in future
Formation of individual plans of qualification advancement for all personnel categories
Plan of personnel qualification advancement (in all categories). Universal programs of training. Analysis of professional skills which are needed in future. Corporate programs in training the managers of the organization. To elaborate a program of actions for department chiefs.
2. Estimation of personnel in LLP “Firm Terminal”
Turning the system of estimation into the system of training
Turning the system into a tool of improving effectiveness of the management
Conducting workshops on issues of career with joint participation of chiefs and subordinates. Seminars in correction of current functioning. Seminars in interrelations inside the personnel. Workshops in management development. To work out a program of actions for department chiefs.
3. System of reward (compensation) in LLP “Firm Terminal”
Realization of the principle of differentiated reward
Intensification of reward differentiation among all categories of personnel
Workshops for specialist of high level, connected with estimation of the activity and reward. System of encouragement for the quality of services offered. Reward for right servicing. System of encouragement for providing the growth of profit. Programs in bonuses and premiums. To work out a program of actions for chiefs of departments.
4. Strategic personnel management in LLP “Firm Terminal”
To increase a part of the market, to improve servicing, to improve quality and productivity
To prepare managers to current changes of the business
Programs of development for managers of higher level. Workshops, devoted to the development of personnel potential on corporate level. Trainings in skills of managing in small groups. Projects on personnel growth on the company. Creation of the system of defectless functioning. To work out a program of actions for chiefs of departments.
Strategic program of actions for the period of 2007-2011
Chapter V