BMW 2008 Annual Report Download - page 30

31 Group Management Report
to the ergonomic needs of older employees. A good
example of this is the “Work System ” pilot project –
the only project of its kind currently being carried out with-
in the automotive industry. Under this project, the forecast
age structure for  has been “reproduced” for everyday
work purposes in one production section at the Dingolfing
site, thus enabling a targeted evaluation of whether the
measures and instruments employed are practical and
effective. The aim now is to pass on the know-how gained
in the pilot project to other areas of the business, the ulti-
mate goal being more suitable technical and organisational
working conditions for older employees – particularly in
terms of workplaces, working hours and job structures.
A new working time model, known as “Full-time Select”
was also introduced in , giving employees the option
to take additional days off with corresponding reductions
in pay. This working time model was well received by the
workforce, providing additional scope for employees to
structure their own time.
Competitive level of personnel expense
Maintaining a competitive level of personnel expense plays
a major role in the success of the BMW Group, and thus in
the securing of jobs. Personnel expense management is
therefore gaining in importance in an increasingly competi-
tive environment.
The BMW Group does not, however, take the one-sided
approach of simply focusing on reducing costs. The main
emphasis is placed on achieving greater efficiency by
increasing productivity. The high degree of motivation
amongst the workforce on the one hand and the em-
ployee
-friendly orientation of the BMW Group on the other
are backed up by performance-based and profit-linked
remuneration arrangements and flexible working time
models. Remuneration, working time rules and other ben-
efits are reviewed and adjusted regularly in close coopera-
tion with employee representatives. In , for example,
the corridor for employees with a BMW time account
was
widened to + / –  hours. The flexibility thus gained
gives the BMW Group more scope to adapt production to
fluc tuating demand without affecting employees’ pay or
personnel expense.
New structure for management remuneration
The remuneration system for middle and senior manage-
ment was restructured in  in an attempt to embed the
BMW Group’s new strategic direction in the management
remuneration system at BMW AG. Under the new system,
greater consideration is given to the contribution made by
an individual when determining the overall level of remu-
neration. This approach takes better account of the under-
lying principle of performance and reward and is also an
effective way of motivating managers to meet their targets.
In future, annual bonuses will be linked to the post-tax re-
turn on sales, the net profit and the dividend level. Growth
and profitability strategies are therefore now directly linked
to the level of management remuneration at BMW AG.
Internationalisation of personnel activities
The Excellence in Human Resources (EHR) programme in
place since  has consistently improved the efficiency
of the personnel and human resources function within the
BMW Group. An important objective of EHR is to ensure
that employees receive efficient service and competent
advice from members of the human resources department
and a swift response to their enquiries.
Based on the experiences made in Germany, organisational
structures, procedures and supporting IT systems were
adapted for international use and successfully introduced
in the United Kingdom in November . A system is
now
in place that offers employees at the Hams Hall,
Good-
wood and Oxford sites standardised procedures for con-
tacting the Human Resources department. Routine and
special topics relating to matters such as recruitment
and
training have also been standardised and can be
handled
centrally, thus improving efficiency whilst maintaining a
high quality of service. The changeover will be completed
in the United Kingdom with roll-out of the new system to
the Bracknell and Hook sites in .