Part 2
The relationship between the human resources management policy and the business strategy of the AtaHolding open joint stock company
1.1. The human resources management policy of the AtaHolding open joint stock company (hereafter the holding) is based on the mission to keep its leading position among the biggest companies operating in various spheres of the economy in Azerbaijan and its regions and to fully meet the interests of society, consumers, shareholders and employees. The human resources management policy stems from a business strategy that defines the long-term, medium-term and short-term goals of the holding and ways to achieve these goals.
1.2. Taking as a basis the staff, i.e. the human factor and the importance of their professional management forms the basis of the management theory. The 3 R principle (right time, right position and right person) in human resources management has been widely accepted in international management. Its interpretation is the timely suitability of an employee to a relevant position. It is very important to involve suitable people in work, to award them correctly, train them, develop and encourage them. When the staff do not fulfil their duties properly, the holding should take the necessary measures. All these issues are part of human resources management.
1.3. The main goal of the human resources management policy is to obtain the status of a preferred employer in Azerbaijans labor market and to employ highly-qualified staff that will bring maximum benefit to the holding. The human resources management policy applies to all the daughter companies and organizations of the holding and is employed in various districts in a centralized way.
1.4. The main requirement of the human resources management policy is quality and is based on the following factors:
- The quality of staff involved in work;
- The quality and effectiveness of business processes.
1.5. In its every daughter company and enterprise, the holding takes account of their specific features and tries to apply single principles and methods in the sphere of managing human resources.
1.6. All internal documents, rules and procedures used in the implementation of the human resources management policy are prepared and applied on the basis of the Labor Code of the Azerbaijani Republic and other related normative-legal acts.
1.7. The human resources management policy, on the basis of rules and procedures accepted by the holding, envisages that all sides involved in the human resources management process are provided with timely and accurate information.
Part 2
The main functions of the Human Resources Development department and the main components of the human resources management policy
2.1. The management of the holding instructs the human resources and training department to draw up and implement the holdings human resources policy. The general role of the Human Resources Development Department is to direct the personnel policy and help the holding to achieve its goals. The Human Resources Development Department should play the main role in creating the necessary working conditions in order for employees to make full use of their skills and possibilities and show their potential.
2.2. The main components of the human resources management policy consist of the following related four spheres:
- To employ staff for the holding on the basis of the best of the best principle and to make sure that their possibilities and potential are used effectively;
- To plan, train and develop the potential of the personnel;
- To prepare and apply effective appraisal systems and methods;
- To create and apply an effective bonus and encouragement system.
Part 3
Equal personnel policy
The employment, promotion and dismissal of staff is carried out regardless of peoples race, skin color, nationality, age, sex, disabilities or other status in all categories. Decisions to employ or promote members of staff are made in line with impartial selection criteria and on an equal basis. The personnel policy in the sphere of wages, bonuses, transfers, training and refresher courses, social and recreation programs is carried out regardless of peoples race, skin color, religion, nationality, age, sex, disabilities or other status. It is banned to allow any forms of discrimination against staff and applicants, including discrimination against them because of their race and religion, to call them names, to harass them sexually or threaten them. An investigation is carried out into each of these cases and if it is proven, relevant disciplinary action is taken.
Part 4
The employment of personnel and effective use of their possibilities and potential.
4.1. The holding is trying to employ potential members of staff that can bring maximum benefit to it and to be a preferred employer in the eyes of employees working in the holding at the moment. Along with relevant specialities and work experience in selecting staff and keeping them at work in order to implement the business strategy of the holding and to achieve its goals, there are the following skills, experience and personal features required:
- To understand the strengths and weaknesses of the holding, opportunities and threats in order to define the most optimal direction of strategic activities;
- To develop professional knowledge and skills on a permanent basis and to be aware of work-related innovations;
- To show initiative at work and to put forward and apply new methods related to work;
- Ability to adapt and psychological sustainability;
- Ability to work with groups and people (teamwork);
- Allegiance and loyalty to the corporate values of the holding;
4.2. The following are the characteristic measures aimed at employing the best of the best in the holding:
- Improvement of employment skills (biography, test interviews and checking of references);
- To conduct analyses of work and to write work instructions;
- To define and document the main working functions related to positions;
- To define employment criteria which meet the requirements of the holding;
- To assess the internal staff, labor market and employment agencies in order to define potential candidates, to cooperate with employment agencies in order to update the CV database and to publish job advertisements in the papers;
- To draw up a strategy to promote the holding as the best job for potential candidates;
- To draw up and apply an induction/orientation program in order to help new members of staff to adapt;
4.3. Apart from employing staff that have the required features, the holding should also make sure that they are being used effectively. The following measures are envisaged to this end:
- To create and apply a career planning system based on wages, training and refresher courses in order to plan the career of the staff;
- To interest and encourage staff and to draw up and apply a vertical and horizontal rotation system in order to develop them in other business spheres.
Part 5
The planning, training and development of the staff potential
5.1. The education/training program is one of the most important spheres of the development system of the holding and its daughter companies and organizations. The systematic approach to the training system that has the status as the general strategy of the holding will allow the holding to know in advance the skills that will be required in the future, to ensure the effectiveness of courses and keep highly-qualified staff. Regular training makes it possible to discover the potential of employees and helps develop them and implement work effectively.
5.2. The following points are identified as part of the training and development policy:
- A general training budget;
- A general training program, including requirements for technical and non-technical training and sources of training;
- Suitability criteria for employees to attend special training courses;
- To identify training needs;
- To conduct courses (at work and outside);
- To appraise training programs;
- To compile annual and monthly reports on the basis of reports presented by the daughter companies and organizations of the holding on the results of training courses.
All staff are playing an important role in the strategic and working aspects of the holding. According to the job needs, they have to attend training and refresher courses inside and outside the holding.
As part of the general training policy, the holding can identify employees with high indicators and carry out a managerial development program for them. Such a program will help the holding to train managers with high potential and improve the management skills of the existing managers.
In order to achieve its strategic goals, the holding should identify the level of managers and ways of developing them and draw up relevant training programs.
Part 6
Appraisal system
6.1. The appraisal of performance is an important part of human resources management. This creates important opportunities to improve the performance of individual employees and the holding as a whole. For the holding the appraisal of performance is the main method of appraising every employee for his work and at the same time, it is an important opportunity to identify training needs for the future development of an employee and to discuss his career development.
6.2. The appraisal of performance is officially carried out once a year. This process should consist of three stages:
- To identify the tasks, goals and requirements of ones work;
- To hold meetings to appraise the results of ones work;
- To link ones performance to goals, including wages, stimulation, training programs, etc.
The human resources and training department is responsible for managing and coordinating this process. Department heads and employees will create individual targets and goals by linking those tasks and goals to the strategic goals of the holding. The process of appraising employees will be carried out by departments. The Human Resources Development department will act as a coordinator in order to ensure proper treatment of all documents (both on paper and in the electronic form), schedules and other administrative elements. This allows employees and the organization to fully understand the importance of this process and conduct it impartially.
Part 7
The encouragement and bonus system
7.1. The Human Resources Development department is directly responsible for distributing wages for every post and/or level and in general, for making proposals to the management board on the bonus structure of the holding. The duty of the Human Resources Development department is to draw up and apply a special policy and programs that reflect the provisions of the holdings bonus system (stimulating plans, a structure of degrees and a policy of pay rises). Such proposals should be based on information gathered from outside sources (for example, salary queries), the holdings strategy on the bonus system, as well as other forms that stimulate employees.
7.2. The following are the main tasks for paying allowances and bonuses:
- The analysis, development, application and appraisal of the allowance policy and salary structure in line with the strategic goals of the holding;
- The analysis and appraisal of salary degrees on the basis of internal value and foreign market conditions;
- The appraisal of the allowances policy in order to ensure that the holding chooses a position in line with its strategic goals inside and outside;
- The appraisal of requirements for the bonus plan and the identification/selection of proposed plans, taking account of the organizations strategic goals;
- The implementation and management of bonus plans.
7.3. The single bonus system of the holding consists of direct money awards and other financial incentives. Direct bonuses consist of salaries and encouragement payments. Financial incentives envisage compulsory or voluntary programs provided by the employer in order to protect an employees health and improve his social security and living standards, including: The holding of corporate parties to mark anniversaries of the holding and other holidays, the holding of picnics together with employees families in summer and spring; the holding of the best employee of the year competition at the end of the year, etc.
Bonuses are determined according to the holdings bonus policy. This policy forms the basis of the holdings payment decisions and is directly linked to the holdings strategy and performance appraisal system. The current policy of managing human resources is a document that forms the basis of the holdings personnel management and the provisions of this document should be used as a guide in managing the human resources of the holding and its daughter companies and enterprises. The holding retains the right, in the established order, to make additions, changes or reductions in its current policy of managing human resources, and changes that are made take effect after being approved in the established order.
