Personnel management

Implementation of goals and purposes of HR Management is carried out through the HR policy of the Company. HR policy is the task-oriented activity directed to the creation of the labor personnel which could perfectly combine the goals and priorities of the Company and its workers. The major object of the HR policy of the Company is personnel (staff). The Company’s activity productivity considerably depends on the skills of the workers and their professional training and business features.

The basic trends of the HR policy of the Company is the organization of the selection, employment of the personnel and its business assessment and the assessment of the psycho-physiological condition, vocational guidance and adjustment, motivation and labor organization, conflicts and stresses management, provision of the social development of the organization and workability of the personnel, development of the corporate culture.

By the end of 2006 the total amount of the Company’s workers was 10,419 persons. In comparison with the given indices for 2005 (10,015 persons) the amount of personnel was increased by 404 persons.

Taking into consideration the indices concerning the employees and fired staff members, the fluctuation of personnel does not exceed the natural level - the coefficient is 13.39 (in 2005 the personnel fluctuation coefficient accounted for 14.61).

The majority of the members of the Company (50%) present the mostly capable of working group – from 30 to 50. In comparison with the past year, they observe the dynamics of workers increase whose age category is under 30 years of age, which us a result of the activity directed to the attraction of the young specialists to the Company.

The educational level of the staff members majority is determined by the Company’s necessity in certain categories of specialists and corresponds to the conditions of work in the electric power, which is the zone of the increased risk (39% of the staff workers possess secondary level education, 30% - higher).