Empowering Employees in Good Business

ACADEMY OF ECONOMIC STUDIES

CUSTOMER RELATIONSHIP MANAGEMENT PROJECT

"INTEL' motivation system"

Bibliography: www.intel.ro

Bucharest, 2008

EMPOWERING EMPLOYEES IN GOOD BUSINESS

The talent, passion, and commitment of our employees fuel our ability to improve lives by advancing technology. We seek the brightest, most forward-looking people from around the world for our workforce and strive to offer a "workplace of choice" that empowers, motivates, and recognizes the contributions of our employees.

For several years, we have experienced rapid growth in an increasingly competitive environment. To strengthen our position for the long term, in 2008 we launched a comprehensive structure and efficiency review of all of our operations, and implemented a broad restructuring effort aimed at cutting costs and non-essential programs, and creating a more nimble, customer-oriented Intel.

Another goal of our restructuring is to make our workplace more productive and rewarding for our employees. The actions taken as a result of these efforts provide better clarity of direction and the reduction of management layers to enable faster and clearer decision making. These actions were also designed to provide a workplace in which employees feel more like part of a team, working toward shared goals in an environment that excites and inspires them to excel.

Our restructuring efforts contributed to an overall decline in headcount of 8,400 from mid-2006 to the end of the year. Most job reductions in 2006 were in management, marketing, and information technology functions. In 2007, the reductions will be more broadly based as Intel improves labor efficiency in manufacturing, improves equipment utilization, eliminates organizational redundancies, and improves product design methods and processes.

Most affected employees are offered either redeployment or a severance package. Redeployment allows employees eight weeks to find another job within Intel. Severance packages are based on length of service; however, most employees receive at least eight weeks of pay plus additional compensation for medical benefits and the option for COBRA medical insurance in the United States. All options include career counseling.

Our Values

Our long-standing Intel Values guide the actions of every employee, helping us maintain uncompromising standards of ethics, performance, and engagement. The first day on the job for all Intel employees includes an introduction to those values, and they are printed on employee identification badges and on posters throughout our workplace. The Intel Values are:

• Customer Orientation

• Discipline

• Quality

• Risk Taking

• Great Place to Work

• Results Orientation

Workforce Diversity

Our employees' faces reflect those of our communities, customers, vendors, and colleagues in the global market. Our diverse workforce enables us to anticipate and provide for the growing needs of a changing marketplace.

Intel supports equal employment opportunity for all applicants and employees, regardless of non-job-related factors, including but not limited to race, color, religion, gender, national origin, ancestry, age, marital status, sexual orientation, gender identity, veteran status, and disability. Intel also makes reasonable accommodations for disabled employees. This policy applies to all aspects and stages of employment—from recruiting through retirement—and also prohibits harassment of any individual or group.

Focus Areas and Programs

Intel' diversity strategy aims to connect continuous improvement of management and co-worker practices to our business results. These practices include how we demonstrate our values and treat each other in an increasingly diverse work environment. They also include but are not limited to attracting, hiring, integrating, develop¬ing, and retaining the global talent that we need to advance our ability to innovate.

Retention.