Chrysler 2004 Annual Report Download - page 25

At December 31, 2004, the Group had 160,549 employees,
compared with 162,237 at the end of 2003. The Group hired a
total of about 14,600 new employees in 2004 — 3,600 in Italy
and 11,000 in other countries. A total of about 18,400
employees (about 6,300 in Italy and 12,100 in other countries)
left the Company. Business acquisitions and disposals resulted
in a net increase of 2,100 employees. The net change is mainly
the result of additions stemming from the consolidation of the
Electronic Systems operations by Magneti Marelli, offset in part
by reductions attributable primarily to the sale of Fiat
Engineering and the Midas operations and by transfers of
employees from Comau Service to associated companies.
ORGANIZATIONAL AND MANAGEMENT CHANGES
The organization of the Fiat Group underwent major changes
in 2004.
Fiat Auto put in place a new organization designed to deliver
efficient management through fast and lean processes that
are based on teamwork and are characterized by quickness
of execution and willingness by employees to take full
responsibility for their actions.
Once Fiat Auto had been reorganized, Fiat S.p.A. changed
its structure as well, following two basic guidelines: deploy a
simpler organization and develop a stronger interaction with
the operating Sectors.
In addition to its traditional role as a publicly traded holding
company, Fiat S.p.A. will continue to perform the fundamental
mission of providing guidance and strategic development to
the Sectors, each of which will continue to enjoy operational
autonomy. In addition, the Parent Company will continue to
provide support to the Sectors’ businesses and coordination
in those areas that require a centralized management approach.
In order to make its organizational and management model
more modern and in tune with the current competitive
environment, the Fiat Group established the Group Executive
Council. The function of this new governance body will be to
identify and maximize Group synergies, evaluate opportunities
and risks for Group companies, share best practices, speed up
and communicate Group decisions and initiatives and shorten
the decision-making process.
In 2004, the Group continued to strengthen its management
organization, adding a considerable number of managers with
international experience.
More than 100 managers were hired from outside the Group,
including 10 who were selected to fill top positions in the
Group’s Sectors.
ENHANCING THE VALUE OF HUMAN RESOURCES
The high skill level possessed by the Group’s staff is
demonstrated by the large number of professionals it includes
(23,868 in total, 45% of whom work outside Italy).
Hiring Qualified Resources.In 2004, the Group hired more than
350 recent college graduates. Among the initiatives that Fiat
carries out to strengthen its cooperation with the academic
community is the significant support it grants to the degree
program of the Automotive Engineering School at Turin’s
Politecnico University. The first 29 students graduated from
this specialized degree program in 2004.
Leadership.As part of its effort to support organizational and
management change, the Group introduced a new leadership
model designed to foster change in its corporate culture and
in the way its people operate.
The first phase of the leadership assessment process for this
new model involved the Group’s top executives. The assessment
process is gradually being applied to all management
employees.
Training and Professional Development.In 2004, the Group
invested 108 million euros (2.4% of its total payroll) in training
and professional development programs designed to support
the operations of Group companies around the world. About
77,000 employees received training and professional
development support.
Isvor Fiat, the training organization of the Fiat Group, was the
main provider of training services.
Isvor Fiat provided training, consulting and professional support
programs representing a total of 24,297 classroom/training days.
An additional 30,700 employees received a total of 182,700
hours of Web-based distance learning support.
Fiat Grants and Scholarships.The Fiat Grants and Scholarships
Program, which was created to help the children of active Group
employees both in Italy and abroad, is continuing with
considerable success.
In 2004, Fiat awarded 573 grants, including 182 to students in
Italy and 391 to students in other countries, at a total cost of
952,000 euros.
INDUSTRIAL RELATIONS
Most of the activity in the area of industrial relations involved
managing the impact on employment of the actions taken to
respond to difficult market conditions and reduce overhead
within the framework of restructuring programs started in
previous years and new programs launched in 2004. These goals
were achieved using the social shock-absorber programs
available under existing laws and through social impact plans,
most of which agreed with employee unions, that cushioned the
impact of downsizing measures on Group employees.
In Italy, employee redundancies were handled primarily through
the so-called “mobilità di accompagnamento alla pensione”,
i.e. layoff with long-term unemployment benefits, which enables
employees who meet certain age and seniority requirements
and leave the Company within the framework of large-scale
layoffs to receive supplemental income (a mobility allowance)
HUMAN RESOURCES
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Environment Human Resources