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BASFBASFBASFisoneoftheworld’slargestchemicalcompanies.BASFataglanceInitsbusinesssegments,BASFpostedsalesof€58,0billionin2007.“Ourstrategicgoalistocontinuetogrowprofitably.〞Around95,000employeesonfivecontinentsarethekeytooursuccess.OurproductsBASF'sportfoliorangesfromchemicals,plastics,performanceproducts,agriculturalproductsandfinechemicalstocrudeoilandnaturalgas.

ActingresponsiblyTheBoardofExecutiveDirectorsandSupervisoryBoardofBASFworktogethertomanageandcontrolthecompany.OurValuesandPrinciplesapplyforallBASFemployeesworldwide.InnovationsforProfitableGrowthOurresearchanddevelopmentactivitiesaimtoconvertmarkettrendsandscientificideasquicklyintosuccessfulinnovations.Throughnewtechnologieswecantapintoadditionalmarketopportunities.Wearealigningouractivitieswithfourstrategicguidelines:Earnapremiumonourcostofcapital

Growthaloneisnotsufficientintheinternationalcompetitionforcapital.Whatwillbeimportantwillbetogrowprofitably.

Helpourcustomerstobemoresuccessful

Inordertogrowprofitably,wewanttofocusevenmorecloselyonourcustomers'needsinthefutureanddevelopandapplythebestbusinessmodelsforthemandus.

Formthebestteam

Wehavecommittedandqualifiedemployeesandanexcellentmanagementteam.Together,theyensureBASF’ssuccess.

Ensuresustainabledevelopment

Forus,sustainableenterprisemeanscombiningeconomicsuccesswithenvironmentalprotectionandsocialresponsibility,thuscontributingtoafutureworthlivingforcominggenerations.

Initsmorethan100majorworldwidemanufacturingfacilities,thecompanyusessomethingunusual…WhatisVerbund?

Verbundstandsforintegrationandnetworking

BASF'sVerbundtracesitsrootstotheintegratedsystemofproductionatthecompany’soriginalsiteinLudwigshafen,Germany,whereintegratedproductionstructuresweredevelopedasearlyastheendofthe19thcentury.Bylinkingmanufacturingplants,value-addingchainsofproductioncanbecreatedwhereby-productsandwastefromoneplantserveastherawmaterialsinotherplants-theProductionVerbund.Itwasalsoclearthatthroughthisnetworkofplants,energyandresourcescouldbeconservedinanEnergyVerbund.CrucialtothisstrategyareBASF’semployees,whomakeupaworldwideKnow-howVerbundbysharingandexchangingideas.

AndtheVerbunddoesnotstopwiththecompany.ItincludesBASF’sbusinesspartners,customersandthecommunitiesinwhichthecompanyoperates.ForBASF,theaimhereistoworkwiththesegroupstodevelopinnovativesolutionsinaccordancewiththeguidingprinciplesofsustainabledevelopment.Theconceptof“workteams〞

Groupswhosemembersworkintenselyonaspecific,commongoalusingtheirpositivesynergy,individualandmutualaccountability,andcomplementaryskills.FourMostcommonTypesofTeamsProblem-solvingteamsself-managedWorkteamsCross-functionalteamsVirtualteamsTypesofTeamsProblem-solvingteam

Ateamof5to12employeesfromthesamedepartmentorfunctionalareawhoareinvolvedineffortstoimproveworkactivitiesortosolvespecificproblems.TheBASFteamsareproblem-solvingteams.

Whenfacedwithproblems,managersatBASFcreatedemployeeprojectteamsratherthantackletheproblemsthemselvesfromthetopdown.Theprojectteams’assignmentsweretofindspecificwaystoimproveoperationalefficiencyandtoimplementthoseideasSelf-managedworkteam

Atypeofworkteamthatoperateswithoutamanagerandisresponsibleforacompleteworkprocessorsegment.ManagersatBASFcreatedemployeeprojectteams.Theseemployees,whodealtwiththeproblemsindependently,workeddayinanddayoutwiththeproductionprocesses.Cross-functionalteam

Atypeofworkteamthat’sahybridgroupingofindividualswhoareexpertsinvariousspecialtiesandwhoworktogetheronvarioustasks.TheBASFhascommittedandqualifiedemployeesandanexcellentmanagementteam.TheyensureBASF’ssuccess.Thecompanyvaluestheirdiverseopinions,experienceandinterculturalcompetenceasimportantpre-conditionsforsuccessintheglobalmarket.Virtualteam

Atypeofworkteamthatusescomputertechnologytolinkphysicallydispersedmembersinordertoachieveacommongoal.AsBASFisaglobalcorporation,soteammembersfromdifferentareascommunicatewitheachotherthroughcomputertechnology,suchasNetMeeting.

It’sveryimportantandnecessaryforacompanytohavesuitable,effectiveandefficientteams.Teamsshouldbeestablishedaccordingtodifferentsituations.Exhibit15-3’ExternalconditionsImposedontheGroupGroupMemberResourcesGroupStructuregroupProcessesPerformanceAndSatisfactionGroupTasksExternalConditionsImposedontheGroupIncludetheorganization’soverallstrategy,authoritystructures,formalregulations,availabilityorabsenceoforganizationalresources,employeeselectioncriteria,theorganization’sperformancemanagementsystem,theorganization’sculture,andthegeneralphysicallayoutoftheworkspaceThewholecompanywaspursuingglobalefficiencySearchingforwaystomakethefacility’sproductionprocessmoreefficientandeffectiveGroupMemberResourcesIncludingmembers’knowledge,abilities,andskills;andpersonalitycharacteristicsThebestteaminindustryEmployeeteamsweretrainedtousestatisticaltoolssotheycouldapplythemcorrectlyandeffectively;hadtheirmanagers’supportGroupStructureThisinternalstructuredefinesmemberroles,norms,conformity(groupthink),statussystems,groupsize,groupcohesivenessAtaskaccomplishmentrole&agroupmembersatisfactionrolemakethefacilitymoreproductiveandcompetitiveeveryoneinvolvedinthesearchforpossiblesolutionsandmanagementcommitmentandfaithintheeffortTheBoardofExecutiveDirectorsandSupervisoryBoardofBASFworktogethertomanageandcontrolthecompany;managerscreateemployeeprojectteamsDifferentteamsize(differenttypesofteam)EnhancedteamcohesivenessGroupProcessesGroupdecisionmakingGeneratemorecompleteinformationandknowledgeGeneratemorediversealternativesIncreaseacceptanceofasolutionIncreaselegitimacyConflictmanagementTraditionalviewofconflictHumanrelationsviewofconflictInteractionistviewofconflictExhibit15-8conflictmanagement

high

Low

LevelofConflict

highLevelofGroupPerformancelowACBGroupTasksThecomplexityandinterdependenceoftasksinfluencethegroup’seffectivenessThemorecomplexthetask,themorethegroupwillbenefitfromdiscussionamonggroupmembersaboutalternativeworkmethodsWHATCOULDWELEARN?It’sascenarioeverytopmanagerknowswell:Theorganizationneedstomovequicklytowardanew,mission-criticalobjective,andit’suptohimorhertodraftandmanagetherightteamofgo-getterstoleadtheeffort.Yetmanyteamleadersneverhittheirgoals–notbecausetheylacktalentontheirstaffs,butbecausethey’renaivetothecomplexitiesofteamdynamics.WHATCOULDWELEARN?ClearGoalsExternal/InternalsupportAppropriateLeadershipUnifiedCommitmentVariousskillsBASF’sSuccess1.CLEARGOALSIftheanswerisyes,thendraftyourplayers.Goal:Decidewhetheryouneedateamatall.Doyouknowhowtogetthejobdone?1Doesthejobrequireconstantcollaboration?

2BASF’SGOALBASF’sGoal:globalefficiencyproductivecompetitiveDecentralizingresearchanddevelopment:creatingemployeeprojectteemstoinvolveeveryone.2.INTERNAL&EXTERNALSUPPORTEducationandTrainingInBASF,everyteammemberweretrainedtousestatisticaltools.Trainingwasprovidedbyoutsideexperts.Notfound200520062007Below100million123.3million2.INTERNAL&EXTERNALSUPPORT(2)Strongfinancialsupporttoensureresearchanddevelopmentofteammembers.Researchanddevelopmentexpensesin2007bysegment*

MillionEUR,%

1Chemicals20115%2Plastics14511%3PerformanceProducts30422%4AgriculturalProducts&Nutrition39428%5OilandGas91%6Corporateresearch,other32323%

1.380100.0%3.APPROPRIATELEADERSHIP(1)BASFvalueemployees’opinions,usebottom-upapproachTheirteammembersplayavitalroleinensuringBASF'ssuccess-theirprogressdependsonmembers’commitment,knowledgeandmotivation.Theyregularlyconductsurveystofindoutwhatteemmembersthinkaboutrelevanttopicsandtoinvolvetheminthefurtherdevelopmentoftheirworkingenvironment.TheresultsshowmanagerswheremembersseeroomforfurtherimprovementwithintheBASFGroup.Andtheyactasanearlywarningsystem,enablingmanagerstoidentifyandrespondtohumanresourcesrisksandthusensuresustainablejobsTHEYPROMOTEDIVERSITY(2)Theypromotediversity1Increasetheproportionoffemaleseniorexecutives2Increasetheproportionofnon-Germanseniorexecutives3IncreasetheproportionofseniorexecutiveswithinternationalexperienceTHEYPROMOTEDIVERSITYInBASF,ateamconsistsofbotholdandyoung,malea

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