Chrysler 2005 Annual Report Download - page 19

18 Reporton Operations Human Resources
01 Report on Operations
Human Resources
At December 31, 2005, the Group had 173,695 employees, compared
with 161,066 at the end of 2004 (this figure is different from the one
published until now due to the impact of changes in the scope of
consolidation resulting from the adoption, from January 1, 2005, of
International Financial Reporting Standards IFRS).The Group hired
around 15,800 new employees in 2005, while a total of around 17,000
employees left the Company. As the net result of changes in the scope
of consolidation, the Group added around 13,900 employees.The
consolidation of the activities originally conveyed to the Fiat-GM
Powertrain joint venture, which returned to Fiat’s control after the
termination of the Master Agreement with General Motors, the
acquisition of a controlling interest in Mako, the consolidation of
Leasys and the sale of WorkNet account for most of the change. As
regards recruitment, over 600 recent university graduates were added
to Group staff, mainly in engineering departments.
The Group’shigh skill staff (“professionals”) totallyexceed 25,000,
44% of whom work outside Italy.
ORGANISATIONAL AND MANAGEMENT CHANGES
The organisation of the Fiat Group underwent major changes in 2005.
Fiat Powertrain Technologies is the new sector into which the engine
and transmission activities that returned to Fiat after the termination
of the Master Agreement with General Motors were conveyed.
Starting in 2006, it also groups the powertrain businesses of Iveco,
C.R.F. and Elasis.These organisational changes will enable Fiat
Powertrain Technologies to take an integrated approach to the
management of multiple cutting-edge research and engineering
centres, with the resulting benefit of gaining a significant advantage
in the development of innovative and competitive products.
Iveco and CNH went through major organisational changes in
accordance with common guidelines that were consistent with the
organisational model adopted by Fiat Auto starting from 2004.
CNH’s new organisation is characterised, on the one hand, by a
differentiation of its brands as reference and contact points with the
marketplace and, on the other, by the establishment of global functions
with governance responsibility over the main business processes.
Iveco’s new organisation is structured as follows:
functions focused on customer service and its development;
platforms focused on products;
functions focused on the efficiency of global processes;
business units dedicated to managing specific businesses;
staff functions that support strategically Sector’s overall objectives.
In 2005, the Group continued to strengthen its management
organisation, adding a considerable number of managers with
international experience.
Atotal of 113 managers were hired from outside the Group, including
9who were selected to fill top positions in the Group’s Sectors.
In 2005, the management assessment process, which involved more
than 2,200 employees, was completed in accordance with a new
leadership model that has become an integral part of the Group’s
management system.
Professional Development
In 2005, the Group invested approximately90 million euros (2.1%
of its total payroll) in training programmes designed to support the
operations of the Group and the professional development of its
employees.
About 89,000 employees received training and professional
development support.
Isvor Fiat, the training organisation within the Fiat Group, was
the main provider of training services.
Isvor Fiat provided training, consulting and professional support
programmes representing a total of 15,475 classroom/training days.
An additional 26,189 usersreceived a total of 137,748 hoursof
Web-based distance learning support.
Grants and Scholarships
The Fiat Grants and Scholarships Programme, which was created to
help the children of active employees in Italy and in other countries
in which the Group has a significant presence, is continuing with
considerable success.
In 2005, Fiat awarded 581 grants – 185 to students in Italy and 396
to students in other countries – at a total cost of 1,032,600 euros.