4-Jun-07 President Vice-PresidentFinancial Director Production Business development department HR-department Legal department Presidents

4-Jun-07 www.terminal.kz

President

Vice-President Financial Director

ProductionBusiness development

department

HR-departmentLegal

departmentPresident’s

administration

Accounts devision

Chief AccountantChief Accountant deputyAc-t by incomeAccountantAccountant-cashierAc-t by taxes

Financial analyst

Head of expedi-tion department

Reg. man-r. byAlmaty

DirectorAtyrau subsidiary

DirectorAktau subsidiary

Manager of the PTB in Aktau

Transportationdepartment

Manager of the hotel

RepresentativeOffice in Astana

Chapter I

The Structure of the Company


Strategy

Multiplanning management

Project management and configuration of a product

Work of executors over the set tasks

Shareholders

General Director

Department Director

Coordinator (manager) of a project

Analyst, programmer, specialist…

Management by the program and portfolio of the project. Investments management.

Management by priorities of executing projects,

planning of bargains.

Management by the team of the project

and configuration

Execution of tasks

Other activity

Scheme of strategic planning in realization of planning management

Chapter II


Level 1. Supporting one project

Level 2. Supporting several projects within one program

Level 3. Supporting projects of the whole department or the branch of an organization

Level 4. Supporting all the projects in the organization

Level 5. Strategic unit, formed on the level of executive government and realizing the support of strategic solutions and distribution of resources within the scales of the enterprise

Levels of a company's maturity.

Chapter II


• Newly accepted employees start giving feedback very quickly, that is connected with simplicity of technology and correspondingly with a short period of training. Here can be given examples of franchising organizations (exactly in that comprehension in which they were formed in our country) – Gerbalife, Chinese medicinal herbs and other products for growing thin.

• Employees with experiences of work and knowledge of the organization are less valuable than newcomers. Examples can be spheres of services – cafes, restaurants, resorts. More young personnel can be attractive for clients, despite moral principles laid in the society. • When a loss of employees with experiences does not threaten for the organization. The example: MacDonalds and other ‘fast foods’. In this case the turnover is something usual and routine. As the main manpower are young employees, students, part-time employees working up and earning additionally at the time free of studies.

• When the market of specialists with demanded for a firm qualification is overfilled and their demands leave behind the supply. The example: Hollywood.

Positive sides of personnel turnover:

Chapter II


• Lowering the quality of products. It reveals without an exception at all types of enterprise, branches of economics and sectors as of industrial as of production sectors. A specialist with experience of work always fulfills his work more qualitatively.

• High index in production costs. Along with lowering the quality, raises the index of production costs, which is connected with as the reduction of production as the increase of defective goods and the usage of raw materials.

• At industrial enterprises is raising the level of waste products and deterioration of ecologic indices of the enterprise.

• In financial world the presence of high level of personnel turnover is the evidence of low level of management in a company that negatively influences on the image and reputation of the company. Imagine yourself an investment bank, in which the level of personnel turnover comprises more 30-40%. Above it was mentioned that exactly a human factor is the main one in such type of companies. How great are chances of such bank to get a serious and important client? Perhaps, not great. And left employees present themselves a hidden threat as they posses huge volume of information, ties, contacts. Competing companies would like to get hold of such valuable employees with pleasure. • New expenses of a company, connected with search of new employees, their training, adaptation at a new place.

Negative sides of personnel turnover:

Chapter II


1st quarter 2nd quarter 3rd quarter 4th quarter Per year

In the whole company 23 24 27 24 98

Top-management - - - - -

Average management - - - 1 1

Linear management 3 1 3 - 7

Key workers 2 8 7 5 22

Specialists 18 15 17 18 78

Example of the table on monitoring of personnel turnover:

Chapter II


The main process of motivation:

NECESSITIES MOTIVES REWARD

Chapter II


Power of Motivation F =Σ valencies* *of expectations

Expectations

Result 1

Result 2

Results of the first

level Result 1а

Result 1b

Result 2а

Result 2b

Instrumentality

Results of the second

level

Theory of expectation or theory of Vroom in labor theory of motivation

Chapter II


The level of labor productivity in LLP “Firm Terminal”, thsd tenge/person

3,400.3

3,593.2

3,711.8

3,548.3

3,200

3,250

3,300

3,350

3,400

3,450

3,500

3,550

3,600

3,650

3,700

3,750

2003 2004 2005 2006

Chapter III


Dynamics of personnel turnover in LLP “Firm Terminal”

31

39

46

34

22

0

5

10

15

20

25

30

35

40

45

50

1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007

Chapter III


y = 1.5417x4 - 18.417x3 + 71.458x2 - 100.58x + 77

0

5

10

15

20

25

30

35

40

45

50

0 1 2 3 4 5 6

Series1

Poly. (Series1)

Line of trend for data of personnel turnover

Chapter III


Chapter III

Category Number of filled questionnaires

Number of filled tests

Almaty 29 24% 30 25%

Aktau 25 21% 17 14%

Atyrau 16 13% 27 23%

Aktyubinsk 5 4% 7 6%

Department of Transport 24 20% 18 15%

Production Technical Base 21 18% 20 17%

TOTAL 120 100% 119 100%

Number of employees that have taken part in the poll:


6546

9

till 1 year since 1 year till 5 years over 5 years

The structure of a Company`s employees according the experience of work in “Firm Terminal” LLP:

Chapter III


№ Company yes noFind

difficult in replying

Did not reply

25Do you consider it to be normal - the delays outside working hours if there is presence of urgent work?

72-60% 30-25% 2-2% 16-13%

26Does your job negatively influence your personal life?

30-25% 76-63% 9-8% 5-4%

28Do the functions performed by you correspond to the functions defined by the job description?

73-61% 21-18% 14-12% 12-10%

29Do you consider that the payment for the job corresponds to the volume of the work executed by you?

25-21% 68-57% 18-15% 9-8%

32

Are you satisfied with the equipping of your working place (please, estimate the presence of office equipment, program products, means of communication, information and etc.)?

60-50% 40-33% 6-5% 14-12%

Satisfaction of employees by their work :

Chapter IV


№ Question Yes No Find difficult in replying

Did not reply

21Are there often in the company happened conflicts between employees (in administration, between employees and managers)?

3-3% 78-65% 24-20% 15-12%

22 Do employees support relations outside the work? 100-83% 1-1% 14-12% 5-4%

24Do employees of the structural subdivision, where you work, like to be in the staff, to participate in joint actions, to spend pastime together?

97-81% 2-2% 17-14% 4-3%

31Have you ever participated in events for elaboration of development plans of the subdivision/the company, improvement of work in the subdivision and etc.?

34-28% 69-58% 11-9% 6-5%

34

In your subdivision there is existed equal and fair distributions of additional weal and privileges, granted by the Company (for example, usage by employees of the official transport or official equipment for personal aims and etc.)

24-20% 66-55% 22-18% 8-7%

35Do you feel as a member of the united team, the opinion of whom is considered?

85-71% 11-9% 18-15% 6-5%

40Have you ever noticed that there exists divergence between words of your direct manager and his practical actions?

16-13% 44-37% 47-39% 13-11%

42If you stopped working in the Company for some reason or other, would you strive to come back?

21-18% 26-22% 54-45% 19-15%

43Is it accepted among employees of the company/the subdivision to help each other in work?

107-89% 0 4-3% 9-8%

Psychological climate in the staff:

Chapter IV


№ Question Yes No Find difficult in replying

Did not reply

23Does the company’s management orient for the opinions of employees while taking decisions?

37-31% 14-12% 57-48% 12-10%

31

Have you ever participated in events for elaboration of development plans of the subdivision/the company, improvement of work in the subdivision and etc.?

34-28% 69-58% 11-9% 6-5%

46Can any employee freely express critical opinion about the company`s actions?

42-35% 23-19% 43-36% 12-10%

Only managers reply

Responsibility is equally distributed among employees

Did not reply

45

In your opinion, only managers are responsible for results in the company or the responsibility is equally distributed among employees?

21-18% 75-63% 24-20%

Involvement of employees into processes of taking decisions:

Chapter IV


№ Question Replied Did not reply

36

Please ,point at the encouragement which would be important for you for special achievements (can be chosen up to 3 (three) variants of replies):

premiums 99-83%

9-8%

promotion up the career 36-30%

admittance of the his associates 18-15%

souvenirs, gifts 7-6%

tickets for entertaining or sportive institutions/payment for dinner in a restaurant

12-10%

additional training 46-38%

public approval, praise 5-4%

board of honors 0

other variant

good attitude, "thank you",

a place to a sanatorium or tourist

centre

More preferable ways of motivation:

Chapter IV


№ Question Replied No reply

47What is the attitude in the staff towards the appearance of a new employee?

positively (normal , good, friendly) 90-75%

19-14%

suspiciously, with distrust 6-5%

in no way 2-2%

in different ways 3-3%

I don't know 1-1%

48How quickly is a new employee adapted (becoming “theirs”)?

quickly (at once or during a month) 44-37%

25-20%It depends on a person 44-37%

I don't know 2-3 months 2-2% 5-4%

49Is there existed any responsible person for the adaptation of a new employee?

yes 2-19%

16-13%no 63-53%

I don't know 18-15%

50How is it accepted to present a new employee to the staff?

at a ???? 55-46%

29-24%is lead to office rooms 25-21%

in no way 4-3%

I don`t know 7-6%

51Are there existed any special programs for adaptation of new employees?

yes 4-3%

22-18%no 56-47%

I don't know 37-31%

special programs are not needed 1-1%

Attitude towards new employees in LLP “Firm Terminal”:

Chapter IV


Company 207 employees

Turnover 15% in a quarter 31 employees

Average salary of one employee 600 USD

Cost of replacement of one employee 2 000 USD

Sum of expenses for personnel replacement in a quarter 62 000 USD

In turnover reduction to 4% 23 employees

Sum of expenses for personnel replacement in a quarter in turnover 10% 46 000 USD

Total economy 16 000 USD

Defining economic damage, received from the process of personnel turnover in LLP “Firm Terminal”

Chapter IV


Evident expenses «Hidden» expenses

An Old employee:- the last salary and bonuses- payment of holidays - privileges, preserving at the employee A New employee :- applying ads for vacancies or payment of services for recruitment agency - conducting interview - estimation - check-up recommendations - salary- adaptation - training

- lowering of productivity because of deterioration of psychological climate in the staff

- final interview - organization of the process of search and selection, adaptation of a new employee - loss of base of knowledge and of human capital

- loss of clients - chain of dismissals

Expenses, connected with dismissal of employees

Chapter IV


The effective system of personnel turnover management in LLP “Firm Terminal in the realization of planning management

Singling out the projects of the

company

Making up projects portfolio and constructing

a signal card of the projects` riskiness

Defining a coordinator and a group of

responsible persons for the

project execution

Introduction of the process approach

in projects management

Motivational stimulation

and introduction of new systems of quality

management, limiting

personnel turnover

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

Chapter V


The structure of “Investment Fund of Kazakhstan” as an Example of matrix structure of management

Chapter V

Chairman of the Board

Vice-chairman of the Board – members of the Board

Members of the Board

Managing directors

Apparatus of the Chairman of the Board

Adviser Press-secretary

Assistant

Structural subdivisions

Fund Management

A c

entr

e of

in

form

atio

n pr

oces

sion

Man

agem

ent o

f in

vest

men

t pr

ojec

ts #

1

(AP

C)

Man

agem

ent o

f in

vest

men

t pr

ojec

ts #

2 (

cons

truc

tion

m

ater

ials

)

Man

agem

ent o

f in

vest

men

t pro

ject

s #

3 (m

etal

lurg

y, c

hem

istr

y,

mec

hani

cal e

ngin

eeri

ng)

Man

agem

ent o

f in

vest

men

t pro

ject

s #

4 (i

nter

-bra

nch

proj

ects

)

Man

agem

ent o

f in

vest

men

t pro

ject

s #

5 (i

nfra

stru

ctur

al p

roje

cts)

Dep

artm

ent o

f an

alys

is o

f pr

ojec

t es

tim

ates

Dep

artm

ent o

f st

ruct

ural

fi

nanc

ing

Juri

dica

l de

part

men

t

Dep

artm

ent o

f st

rate

gic

anal

ysis

, sta

tist

ics

and

esti

mat

es o

f as

sets

Dep

artm

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f m

onit

orin

g an

d au

dit

Fin

anci

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dmin

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part

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Sec

urit

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e

Rep

rese

ntat

ive

offi

ce

in A

stan

a ci

ty


Certification

Phyto sanitarian

Certificate of security

Certificate of conformity

Transportation and local delivery

Auto transport

Railway transport

Air transport

Forwarding

Calculation of transportation cost

Following wagons

Account with railway

Customs-logistic services

Customs clearance

CCD

DCD

PoD

CCV

SFD

Warehousing

Capital storehouse

Open-air ground

In containers

Transports

Unloading and loading

Work with goods

Acceptance of load

Insurance of load

Loading/unloading

By auto loads

By air loads

By railway loads

Cleansing of load

Registration of documents

Classification of customs-logistic services and business-processes in LLP “Firm Terminal”

Chapter V


Project

Employee 1 Employee 2 Employee N

Process 1

Process 2

Process …

Process N

Indexes

R

R

R

I P

P

P

I

I

II

I

Functional-role matrix of a separate project

Chapter V


QUALITY MANAGEMENT SYSTEM IN PLANNING MANAGEMENT:

Principle “Leadership of management” Principle “Process approach” Principle “Systematic approach” Principle “Involvement of personnel into QMS” Principle “Orientation at a consumer” Principle “Relations with suppliers” Principle “Taking decisions, based on facts” Principle “Constant analysis, measurement and improvement”

Chapter V


Type of solution Aims

Concrete subprograms of actions Strategic Tactical

1.Selection, placing and promotion of personnel in LLP “Firm Terminal”

Advancing qualificationof the acting personnel by means of training for achieving a necessary position in future

Formation of individual plans of qualification advancement for all personnel categories

Plan of personnel qualification advancement (in all categories). Universal programs of training. Analysis of professional skills which are needed in future. Corporate programs in training the managers of the organization. To elaborate a program of actions for department chiefs.

2. Estimation of personnel in LLP “Firm Terminal”

Turning the system of estimation into the system of training

Turning the system into a tool of improving effectiveness of the management

Conducting workshops on issues of career with joint participation of chiefs and subordinates. Seminars in correction of current functioning. Seminars in interrelations inside the personnel. Workshops in management development. To work out a program of actions for department chiefs.

3. System of reward (compensation) in LLP “Firm Terminal”

Realization of the principle of differentiated reward

Intensification of reward differentiation among all categories of personnel

Workshops for specialist of high level, connected with estimation of the activity and reward. System of encouragement for the quality of services offered. Reward for right servicing. System of encouragement for providing the growth of profit. Programs in bonuses and premiums. To work out a program of actions for chiefs of departments.

4. Strategic personnel management in LLP “Firm Terminal”

To increase a part of the market, to improve servicing, to improve quality and productivity

To prepare managers to current changes of the business

Programs of development for managers of higher level. Workshops, devoted to the development of personnel potential on corporate level. Trainings in skills of managing in small groups. Projects on personnel growth on the company. Creation of the system of defectless functioning. To work out a program of actions for chiefs of departments.

Strategic program of actions for the period of 2007-2011

Chapter V

Documents

4-Jun-07 President Vice-PresidentFinancial Director Production Business development department HR-department Legal department Presidents