Appendix to Human Resource Guideline

for line managers The Nynas Group March 2000

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TABLE OF CONTENTS

1.1 THE HR FUNCTION..........................................................................................................................3 1.2 CORPORATE HR..............................................................................................................................3 1.3 LOCAL HR: ROLES AND RESPONSIBILITIES...........................................................................................4 1.4 CEO.............................................................................................................................................4 1.5 BA MANAGERS................................................................................................................................4 1.6 LINE MANAGEMENT.........................................................................................................................4 2 COMPETENCY FRAMEWORK.......................................................................................................5 3 HOW DOES THE COMPETENCY FRAMEWORK SUPPORT GROUP VALUES?..............10 4 DESCRIPTION OF TASKS AND RESPONSIBILITIES IN THE RECRUITING PROCESS.11 5 THE RESOURCE AND COMPETENCY PROCESS....................................................................13

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Roles and responsibilities

The roles and responsibilities supporting the achievement of the human resource vision, are defined according to the following organisational units: corporate HR, local HR, group management and business area management team. 1.1

The HR function To articulate and recommend policies and guidelines on HR matters (to the GMC) To promote group level HR matters to the GMC To select and drive implementation of common HR planning and reporting tools and systems.

1.2 Corporate HR Co-ordination at group level To formulate and monitor overall HR planning in respect of manning levels, competencies, age structure etc To handle HR matters involving more than one formal employer within the Group. To provide advisory capacity in connection with training, HR development and outplacement. To handle service contracts for BA managers, members of BA management team and managing directors, general managers of subsidiary companies. To approve of individual external education and training according to financial authorisation, AB Nynas Petroleum. (To be revisited) To develop and enforce implementation of a common management training program. To select and drive implementation of common HR planning and reporting tools and systems. To act as a custodian of shared HR processes and tools. To participate and approve of appointment/hiring of managers to corporate functional management and BA management teams (IICC). To supervise the inter-balance between corporate and BA remuneration system including to act as custodian of nomenclature system on all levels. To monitor Group competence gap and provide plans for its closure. To act as secretary and focal point in the Internal Incentive Compensation Committee (IICC). To act as team leader of the HR function To negotiate with trade unions on group level HR management, the parent company

To act as HR manager for staff employed at AB Nynas Petroleum, Corporate, as stated under local HR: Roles and responsibilities.

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1.3

Local HR: Roles and responsibilities To recommend terms of employment and other employee benefits for employees employed by the local company or BA (positions non-directly reporting to business area Manager, BAM). To carry out negotiations with the unions concerning collective agreements, pay reviews and issues according to the local labour legislation. To handle recruitment, transfers, resignations etc and the administration of salaries, wages, tax collections, health service and human resource social activities within the local company or BA. To provide corporate HR with local information in connection with training, development and outplacement. To provide corporate HR with information about local human resource planning in respect of manning levels, competencies, age structure etc, To provide corporate HR with information about human resource matters regarding members of BA management team and managing directors, general managers of subsidiary companies. To supervise locally the common HR planning and reporting tools and systems. To drive and advocate the local implementation and adherence of HR policies and guidelines. To support employees and managers on individual HR issues To be active members of the HR function

1.4 CEO To approve of and act as supporter for the implementation of the HR policies and guidelines in the company 1.5

BA managers To support local implementation of HR policies and guidelines To draw up a human resource budget, making recommendations for recruitment and ensuring employees concerned are covered by the Nynas HR policy. To make recommendations for appointments, agreements on salary or changes in pay, other benefits and bonus or bonus systems for all those who reports directly to the BAM or the President. Chief functional heads approve all recruitment within their areas of responsibility. Line Management To execute the Nynas HR policies and guidelines. To assume responsibility for recruitment, replacement, and development processes. To operate the approved the HR tools and systems. To know and coach team members.

1.6

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COMPETENCY FRAMEWORK
SCALE 1 - Little or none
Displays only little or no understanding, knowledge or skills within this particular competency Requires instruction and close supervision

Scale definition and description of generic competencies

2 - Fair
Displays basic understanding, knowledge or skills Is still in the process of developing skills and/or knowledge Requires supervision

3 - Good
Displays good understanding, knowledge or skills Ability to leverage knowledge and skills in connection with other competencies Works without supervision within agreed frames

4 - Exceptional
Is recognised as subject matter expert or role model on the particular competency Works independently and is capable of instructing or leading others

COMPETENCY DIMENSION

TECHNICAL/ACADEMIC DIMENSION
Generic capabilities 1. Continued professional development Basic education Maintaining educational level Higher education Specialist education

assuming responsibility for ones own continued professional and personal development excelling in field of expertise maintaining required skill level

2. Environmental care Managerial capabilities 3. Supporting continued professional and personal development Basic Individual Job specific capabilities X Y Z X Y Z X Y Z X Y Z X Y Z Team training Cross organisational development

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1 - Little or none
Displays only little or no understanding, knowledge or skill within this particular competency Requires instruction and close supervision

2 - Fair
Displays basic understanding, knowledge or skills Is still in the process of developing skills and/or knowledge Requires supervision

3 - Good
Displays good understanding, knowledge or skills Ability to leverage knowledge and skills in connection with other competencies Works without supervision within agreed frames

4 - Exceptional
Is recognised as subject matter expert or role model on the particular competency Works independently and is capable of instructing or leading others

COMPETENCY DIMENSION

BUSINESS DIMENSION
Generic capabilities 4. Achieving results adding value having impact creative problem solving external networking 5. Decision making assume responsibility information selection 6. Planning and organising Exceptional diplomatic approach Good entrepreneur and analyst skills Little result orientated Exceptionally result orientated Good administrative and entrepreneur skills Little diplomatic skills

Exceptional diplomatic skills Good entrepreneur Fair analyst Little result orientated Exceptional entrepreneur Fair diplomatic skills Good result orientation Little analyst skills Exceptional analyst skills Good result orientation Fair diplomatic skills Little analyst skills Exceptional diplomatic and entrepreneur skills Little result orientated and analytic

Exceptionally result oriented Good analyst Fair entrepreneur Little diplomatic skills Exceptional analyst skills Good diplomatic skills Fairly result orientated Little entrepreneur skills Exceptional entrepreneur skills Good diplomatic skills Fairly result oriented Little analyst skills Exceptionally result oriented and analytic Little diplomatic and entrepreneur skills

7. Nynas business knowledge market understanding process understanding 8. Financial awareness and understanding - use money efficiently

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1 - Little or none
Displays only little or no understanding, knowledge or skill within this particular competency Requires instruction and close supervision

2 - Fair
Displays basic understanding, knowledge or skills Is still in the process of developing skills and/or knowledge Requires supervision

3 - Good
Displays good understanding, knowledge or skills Ability to leverage knowledge and skills in connection with other competencies Works without supervision within agreed frames

4 - Exceptional
Is recognised as subject matter expert or role model on the particular competency Works independently and is capable of instructing or leading others

COMPETENCY DIMENSION

Managerial capabilities 9. Business leadership strategic approach Good diplomatic and analyst skills Fair entrepreneur skills and result orientation Good entrepreneur and result oriented Fair diplomatic and analyst skills

implementing the dimension effective use of information resource optimisation applying a performance oriented management style

X Y Z

Job specific capabilities X Y Z X Y Z X Y Z X Y Z

PEOPLE DIMENSION
Generic capabilities 10. Continuous improvement critical analysis of change open minded towards the future 11. Team orientation cross-organisational co-operation respect and caring showing a forthcoming and open attitude service-minded 12. Interpersonal skills social competence human understanding Exceptional diplomatic approach and administration skills Little entrepreneur skills and result orientation Exceptional result orientation Fair administration skills Fair entrepreneur skills Little diplomatic approach Good diplomatic approach and administration skills Fair entrepreneur skills and result orientation Good result orientation Fair administrative, entrepreneur and diplomatic skills Good entrepreneur skills and result orientation Fair diplomatic approach and administration skills Good diplomatic approach Fair administrative and entrepreneur skills Fair result orientation Exceptional entrepreneur skills and result orientated Little diplomatic and administrative skills Exceptional diplomatic approach Fair administration and entrepreneur skills Little result orientation

Exceptionally result oriented Exceptional administrative skills Little diplomatic orientation and entrepreneur skills

Good result orientation and administrative skills Fair diplomatic orientation and administrative skills

Good diplomatic approach and entrepreneur skills Fair result orientation and administrative skills

Exceptional diplomatic approach and entrepreneur skills Little result oriented and administrative skills

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conveying your own and your teams position in a compelling way

1 - Little or none
Displays only little or no understanding, knowledge or skill within this particular competency Requires instruction and close supervision

2 - Fair
Displays basic understanding, knowledge or skills Is still in the process of developing skills and/or knowledge Requires supervision Good result orientation Fair entrepreneur and administrative skills Little diplomatic skills

3 Good
Displays good understanding, knowledge or skills Ability to leverage knowledge and skills in connection with other competencies Works without supervision within agreed frames Good diplomatic skills Fair entrepreneur and administrative skills Little result oriented

4 - Exceptional
Is recognised as subject matter expert or role model on the particular competency Works independently and is capable of instructing or leading others

COMPETENCY DIMENSION

13. Communication being responsive

checking for understanding engaging in dialogue demonstrating inter-personal skills being open and honest in communication

Exceptionally result oriented Good entrepreneur and administrative skills Little diplomatic skills

Exceptional diplomatic skills Good entrepreneur and administrative skills Little result orientation

Management capabilities 14. People Management and Development motivating others coaching staff creating development opportunities Good result orientation and good analytic skills Good entrepreneur and diplomatic skills Fair result orientation and analyst skills

delegating responsibility and assigning authority show ability to enthuse obtain commitment from the team identify and close competency gaps on team-level creating an environment which fosters open and honest communication Exceptional analyst skills Good result orientation Fair diplomatic approach Little entrepreneur skills Exceptional entrepreneur skills Good diplomatic approach Fair result orientation Little analyst skills

15. Change management act as a role model for the shared values leading by being a good example

encouraging and supporting new behaviour open to assessment and changing own behaviour if

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necessary Job specific capabilities X Y Z X Y Z X Y Z X Y Z X Y Z

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How does the competency framework support group values?

competitivenessWee encourage and expect individual develop. to achieve company We believe in open and honest communication We commit ourselves and assume responsibility We expect everybody to understand and perform in his or her role We respect and care for people and environment We recognise and reward good performance We change and innovate to succeed We co-operate as one company We strive to produce results We believe in team-work

A set of generic and managerial competencies has been defined for each competency dimension. These competencies support the group values as illustrated below:
GENERIC AND MANAGERIAL COMPETENCIES SUPPORTING THE GROUP VALUES

1. Continued professional development 2. Environmental care

x x

x x x x

3. Supporting continued professional and personal development 4. Achieving results

x x

x x x x x x x x x x x x

5. Decision making

6. Planning and organising

7. Nynas Business Knowledge 8. Financial awareness and understanding 9. Business Leadership

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10. Continuous improvement 11. Team orientation

x x x x x x x

x x x x x x x x x x x x x

x x x x

12. Interpersonal skills

13. Communication

14. People management and development 15. Change management

x x

Description of tasks and responsibilities in the recruiting process

PROCESS DESCRIPTION AND ROLES & RESPONSIBILITIES TASK RESPONSIBILITY AO/line man ACTION Review of organisation, division of work Reasons for recruitment, requirements and expectations according to long-term plan and budget

Needs analysis

Job Description Job Description to HR Draft advertisement to HR Advertisement In-house advertisement External advertisement Compilation of applications Selection, interviews and checking references Decision to employ Information to employee organisations if necessary Employment contract Introduction: prior to recruitment Introduction: to the local work place

Line man Line man Line man Comm. man/HR Comm. man/HR Comm. man/HR Line man/HR Line man/HR Line man, AO, HR HR HR conducts negotiations if necessary Interviews and references. HR decides if a test is to be used, which one, and ensures it is carried out All vacant positions should in the first place be advertised internally Choice of publication takes place in consultation between line manager and HR Needs analysis and job description form the basis

HR HR Line man

HR draws up Application for employment Employment interviews First day at work: manager and personal mentor First month: induction programme, meeting with trade union representatives, specially selected mentor After 3 months: follow-up interview with manager

Introduction to the Nynas Group

HR

Induction course some time during the first six months

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Introduction after some time in the job

Line man

Appraisal process (if the new recruit has more than 3 months in the job, otherwise the appraisal is postponed till the following year

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The resource and competency process

The process comprises a rolling cycle of 3 years and an aggregation level from individual staff to group level, as shown in the diagram below. Resource and competency requirements

Corporate HR compile projection premises: Anticipated trends. This includes high-level expectations on demographics, legislation, requirements of the future employees etc. GMC supported by Corporate HR projects resource and competency requirements for the next 2 years based on anticipated trends Line managers supported by local HR managers assess resource and competency requirements for the next 2 years on departmental level, based on individual inputs and anticipated trends BA managers supported by local HR managers assess resource and competency requirements for the next 2 years on BA level, based on department input GMC supported by Corporate HR assess resource and competency requirements for the next 2 years on Group level based on BA input and initial projected resource requirements

Existing resource and competency level:

Local HR managers aggregate individual competency assessment for current year to department level and BA level Corporate HR aggregate competency assessments to group level

Resource and competency gap: - is calculated as the difference between requirements and existing level at any orga-nisational level. Competency leveraging: - is the question of how to meet a resource and competency gap; that is, through recruiting, training and development, succession planning or any other migration of the work force. This is to be addressed by GMC, BA managers and line management respectively on the relevant organisational level.

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A TV I SA S C T DW HR S U C A DC M E E C P A N GI A YGV NY A C I ITE S O IA E IT E O R E N O P T N Y L N IN N N I E E R
The HR T PD W O- O N POES RCS
Initia p l rojected resource requ irem ts en Grouplevel (CorpHR)

Year

P O C IO O Y A + R JE T N F E R 3 B TO - P O T MU POES RCS
Projectedan d ag greg atedre source an com eten d p cy re irem ts onGrou qu en p level AGG. RES & COMP REQUIREMENTS Ag greg p ate resent com petencylevel an d m , Grou level ix p AGG COMPETENCY ASSESSMENT Resourcean d com ete p ncyg on ap Grou level p Strate gic recru iting , Grou level p

C ME E C L V R G G O P T N Y E E A IN

Strateg Objectives ic Grou level (GMC) p

Strateg ic train gan in d d evelop , ing Groupleve l

Su ccesion p nn g la in , Grou level p

Oth er m ration ig

AGG. RES & COMP GAP

STRATEGIC COMPETENCY PLANNING

A t ip t dt e d nic ae r n s
Projectedan d ag greg atedre source an com eten d p cy requ irem ts b BA en y AGG. RES & COMP REQUIREMENTS Ag greg p ate resent com petencylevel an d m , BA level ix AGG COMPETENCY ASSESSMENT Resourcean d com ete p ncyg on ap BA level Strate gic recru iting , Grou level p Strateg ic train gan in d d evelop , ing Groupleve l Su ccesion p nn g la in , Grou level p Oth er m ration ig

AGG. RES & COMP GAP

STRATEGIC COMPETENCY PLANNING

Projectedresource an com eten d p cy req irem u ents b y dep artm t en AGG. RES & COMP REQUIREMENTS

Ag greg p ate resent com petencylevel an d m , dep ix artm t level en AGG COMPETENCY ASSESSMENT

Resourcean d com ete p ncyg on ap d arm level ep ent

Strate gic recru iting , Grou level p

Strateg ic train gan in d d evelop , ing Groupleve l

Su ccesion p nn g la in , Grou level p

Oth er m ration ig

AGG. RES & COMP GAP

STRATEGIC COMPETENCY PLANNING

APPRAISAL PROCESS: CURRENT YEAR B Projected ind u ivid al com peten cy req uirem nts for th e e com gy in ear A C Id entify in ivid al d u com peten cy gabfor th e com gy in ear (B-C)
CAREER & DEVELOP MENT PLAN

Id tifyind en ividu al com eten p cy requ irem ts, p en resen t

Assess in ivid d ual com ete p ncylevel, p rese nt

TEMPLATES IN ITALICS

U PDATED J OB DESCRIPTION

J OB DESCRIPTION

COMPETENCY ASSESSMENT

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