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Sustainable
Development Report 2022
Rustam
ASILOV
Best Process Plant Operator JV “Kazgermunai” LLP
First place in the “Uzdik Maman – 2022” professional contest

Our approach to management

OUR PEOPLE AND DEVELOPMENT OF THE REGIONS OF PRESENCE

Principle 1. Business community shall provide support and respect for protection of the internationally declared human rights .
Principle 2. Business community shall not be implicated in violation of human rights.
Principle 3. Business community shall support the freedom of association and real recognition of a right to enter into collective agreements.
Principle 4. Business community shall be in favour of liquidation of all forms of forced and compulsory labour.
Principle 5. Business community shall be in favour of complete extirpation of child labour.
Principle 6. Business community shall be in favour of liquidation of discrimination in the sphere of labour and employment.

Our approach to management

CONCEPT OF PERSONNEL POLICY IS BASED ON THE FOLLOWING KEY PRINCIPLES:

  1. Balance of interests of employees and KMG – when laying down the Personnel Policy of KMG and other regulating documents in the field of personnel management, it is required to take into consideration equally the interests of both employees and KMG;
  2. Uniform personnel policy for the entire KMG Group – areas of activities and development in the field of personnel management shall be unified for all companies of KMG Group;
  3. Displacing the role of HR from administrative and supportive to strategic for business – HR function shall become a strategic partner for the business and not just an administrative and supportive function;
  4. Creating added value for business – the HR employees are required, in their everyday work, to consider to which extent their performance create added value for an in-house customer and prioritize their work based thereon;
  5. Optimal organization structure and number of employees – HR function shall build the most optimal organization structure in the Company on the basis of the best practices in the industry and contribute to continuous improvement of KMG in order to improve working efficiency;
  6. Planning the number based on the needs of the business and conditions of the labour market – planning the number and costs for personnel shall be based on plans and needs of the business directions subject to conditions of the labour market;
  7. Continuous improvement of training and career enhancement programs – HR function shall create all necessary conditions to continuously improve knowledge, abilities, skills and competencies of employees and managers by studying the up-to-date training programs and introducing the same into the education and development process;
  8. Building the self-training organization based on 70-20-10 model – the employees shall bear personal liability for their continuous development by way of: (1) on-job training by solving complex tasks, participation in projects, remote training (70 % of total training), (2) communication with colleagues and managers through feedback, coaching, mentoring (20 % of total training), and (3) participation in workshops, trainings, conferences, lectures and other educational events (10 % of total training);
  9. Liability of managers for personnel management – the managers of all levels shall bear liability for personnel management and HR function shall provide necessary support and tools;
  10. Creation of culture of employees’ involvement in joint achievement of strategic goals – HR function promotes modelling of culture of comprehension, concernment and support of employees at all levels of KMG of strategic, operating and production objectives;
  11. Creation of conditions to motivate the employees – HR function shall generate the processes and systems and provide necessary tools to ensure effective motivation of employees by means of various forms and methods;
  12. Prevention of law violation – HR function shall ensure the compliance with the laws when formalizing, changing and terminating labour relations, developing and using the internal documents, rules and procedures used by KMG.

CONCEPT OF OUR PERSONNEL POLICY IS AIMED AT CREATING CONDITIONS TO INCREASE THE VALUE OF HUMAN CAPITAL IN KMG GROUP. ACHIEVEMENT OF THIS GOAL PROVIDES FOR IMPLEMENTATION OF THE FOLLOWING HR OBJECTIVES:

development of corporate culture and enhancement of skills of the managers – development of corporate culture based on the principles of meritocracy and “commercial” thinking focused on succession, result orientation and willingness to assume responsibility. Development of leadership competencies;

achievement of positive level of involvement and social stability – reinforce an emphasis on systematized approach to manage the involvement and social stability through regular measurements, development and implementation of plans. Achieving and retaining positive involvement values (60 % or more) and social stability (61 % of more);

unification and enhancement of efficiency of HR function – structuring the customer-cantered HR function, which provides adequate support for implementing the strategy of KMG. Unification of HR processes and standards considering the best world and in-house practices of KMG subsidiaries. Creating a unified information space through unified automation solutions. Transfer of routine operations not generating added value to the Common Service Centre;

introduction of a complex talent management system from attraction to succession and compensation administration – introduction of a talent management system ensuring transparency, conditions and motivation of personnel in order to retain, promote and designate to key positions of effective and potential employees of KMG Group. The key elements of a complex talent management system will be:

  • transparency and objectivity when hiring;
  • dependence of compensation levels on the results of assessment of activities and the market;
  • succession of key positions;
  • detecting talents and developing personnel reserve;
  • availability of development plans of employees, which are based on the results of assessment of efficiency and needs of business; and
  • priority of in-company candidates when selecting to fill the key positions in KMG Group.

improvement of qualitative composition of the personnel subject to the needs of business – determination of present-day qualification requirements for positions, ensuring employees’ conformance to those requirements through system processes (recruitment, development, assessment, etc.), as well as particular projects (such as test for conformance to requirements for the position). Strengthening the key competencies of the personnel, which are necessary to achieve strategic goals (for instance, ‘Human Capital Development in Upstream’ program, project and investment management competence development programs, competencies for effective Company’s approach to IPO, etc.;

effective management of a number to increase in performance – effective planning and prediction of human resources subject to current and target needs of KMG. Development of unified rates and standards of quantity, implementation of the programs on optimization of quantity (for instance, withdrawal of non-core functions) through economically feasible tools and reallocation of personnel between labour redundant and deficient organizations.

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