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Outstand in Crisis

Outstand in Crisis

“Cadres are all-important”; that is why, the Group helped the employees that left their homes against their own free will and members of their families to move and continue compensating their accommodation expenses. As a rule, changes cause new changes. The situation made Corum’s management take non-standard cardinal decisions and re-evaluate the methods and efficiency of its business processes, including its personnel policy.


During this difficult period, the quality of communications plays its important role. Any decision, from organisational matters to structural changes within the Group, was communicated to the employees. This gave an opportunity to promptly introduce new ideas.


For example, the Group has easily completed the introduction of the process management model. Unlike the former functional model, the process model provides for clear understanding of the process result in general, not only of a certain area of work, which was within the responsibility of a certain employee. When starting the implementation of a project, all employees involved can understand what resources they have and what result they should get in the end. It is important that the model enables them to see their own role in the common result. This is a highly encouraging factor.  


The grading labour remuneration system introduced in 2013 has shown itself to good advantage, too. It is based on dividing positions and professions into grades, which the calculation of a basic remuneration depends on. Production employees’ wages include larger bonuses than wages of other employees’ categories. Now employees know that their wages depend on the results they achieved and the level of fulfilment of the production plan. It means that a worker focuses on manufacturing parts to complete a certain order now, not on manufacturing parts to be kept in stock. After the new labour remuneration system was introduced, the production efficiency has grown by 22%.


The Group pays great attention to personnel training. The employees are trained directly at their plants. In this connection, Anna Adom, Corum’s HR Director, says: “Higher educational institutions do not train all specialists that we need at our plants. For example, they do not train fettlers, hand or machine moulders, vertical drop machine operators. Therefore, we established training centres at our plants. We hold licences for training 17 classes of professional qualification groups”.


The Group’s advantage is its educational policy for management personnel. To train top-managers, Corum applies the Succession Pool and Top-50 programmes. The members of the programmes attend trainings, forums and conferences, undergo probations abroad. In spite of the difficult situation in the country, 125 people are involved in the programmes even now. The results of applying such an approach speaks for itself: one quarter of the management personnel has been “grown” within the Group.


Today, the Group is still sensible of the consequences of the crisis in 2014. It is natural, as the considerable part of its customers is represented by coal mining companies of Donbas. Nevertheless, compared with Quarter IV of the previous year, the Group has managed to increase its consolidated revenues by 7.7%, due to the increase in the share of export and service. The Group says that it has become possible, because they can clearly see their goal and each of their employees work efficiently.


Illia Artemchenko

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