Chrysler 2001 Annual Report Download - page 18
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Please find page 18 of the 2001 Chrysler annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.9%
15%
76%
48%
25%
27%
Rest of Europe Rest of the worldItaly
1991 2001
Employees by geographical region
18
HUMAN RESOURCES AND ORGANIZATIONAL
DEVELOPMENT
At December 31, 2001, the Group had 198,764 employees,
compared with 223,953 at the end of 2000.
The Group hired 20,400 new employees in 2001 — 6,700 in
Italy and 13,700 in other countries. A total of 28,189 employees
(9,600 in Italy and 18,600 in other countries) left the Company.
Business acquisitions, divestitures and, more importantly,
transfers to the several 50-50 joint ventures (Fiat-GM Powertrain,
GM-Fiat Worldwide Purchasing and Global Value) resulted in
a net decrease of about 15,500 employees.
Number of employees at 12/31/00 223,953
Additions 20,400
Reductions (28,189)
Outsourcing (1,900)
Changes in the scope of consolidation (15,500)
Number of employees at 12/31/01 198,764
“… evolution of the organizational structure…”
The global expansion of the Group’s operations has produced a
shift in the geographical distribution of its staff. The number of
employees working outside Italy has increased steadily and now
amounts to 52% of the total workforce. The growth of the
services companies, which by their very nature are less cyclical
than manufacturing businesses, is consistent with the Group’s
strategic objectives, particularly as they apply to Business
Solutions.
Major developments that occurred in this area include the
creation of Global Value, a 50-50 joint venture of Business
Solutions and IBM Italia that provides high value-added
information technology services to corporate customers.
Business Solutions transferred its ITS and GSA subsidiaries
to the new joint venture.
The transfer of Fiat Auto’s engine and gearbox businesses
to Fiat-GM Powertrain (a 50-50 joint venture) and of the
purchasing operations to GM-Fiat Worldwide Purchasing,
as stipulated in the industrial alliance reached with General
Motors, involved about 13,000 employees.
In December 2001, the Board of Directors approved important
measures that will expand and speed up the Group’s restructuring
programs. These new measures, which are being implemented
in 2002, apply also to Fiat Auto and its organization. The
approved reorganization guidelines call for the establishment
of four Business Units, each with full operating responsibility
and are designed to help the Automobile Sector undergo a
paradigm shift as it seeks to solve its profitability problems.
“… business process reengineering: the Program Next …”
The process reengineering effort that got under way in 2000
has been subsumed into the Program Next that promotes
the redesign of internal processes of all Group Sectors. The
objectives of this Program include an improvement in process
performance to make operations more efficient, enhance
the quality of products and services and increase customer
satisfaction, while at the same time reducing process costs.
As of December 31, 2001, the total cost of the processes being
reviewed by the Sectors amounted to over 17 billion euros. The
reengineering work already under way affects 125 processes with
an aggregate cost of more than 8 billion euros. The more than
800 people who are working on this project have been provided
with specially designed training and methodology assistance.
When fully implemented, the Program Next is expected to
reach very ambitious objectives: a reduction of 1.5 billion
euros in process costs by 2004 and a significant improvement
of process effectiveness.
ENHANCING THE VALUE OF HUMAN RESOURCES
The people who work at the Fiat Group are a Company asset,
and enhancing their value is an obligation of fundamental
importance. The numerous programs and initiatives that the
Group launched in this area in recent years continued in 2001
and, whenever necessary, were strengthened and made more
consistent with the needs of its businesses.
“… enhancing competencies …”
The implementation of Project Professional, a program
specifically designed to increase personal and collective
competencies that enhance the Group’s competitiveness,
continued. Work carried out in 2001 included assessing the
competencies of more than 20,000 professionals — one-third
outside Italy — using as a frame of reference a competencies
map that had been improved and updated to take into account
changes in the Group’s businesses and in specific professional
18
Fiat and ITS PEOPLE