The 2009/2010 Human Resources Report

In order to turn our Group vision into action for our customers, HR supports the fundamental transformation of Deutsche Telekom to “One Company.”

“Add value” through competitive staff and “enable transformation” through service culture. Our activities for the HR Big X “Competitive Workforce” revolved above all in Germany around new employment prospects for civil servants and non-civil servants and competitive labor costs and skills structures thanks to end-to-end total workforce management, which has now also been launched at international level. However, success is not just based on naked figures but also – and specifically – on the culture that an enterprise practices. In 2009, the HR Big X “Service culture” therefore featured service excellence in culture and organization as well as implementation of our new Guiding Principles as its key topics. The organizational changes throughout the Group rely on support from our professional change management. Parallel to this, we are currently restructuring HR as a “partner for business.” We have already achieved business- and customer- focused orientation in Germany with introduction of the three-role model in the “HR@2009” top project. The newly launched “HR@2012” program carries on from there with the object of achieving further improvements in quality, customer satisfaction and efficiency. Team International cooperation needs respect for diversity. National autonomy, global framework. When crafting relationships with our employees, we need to focus our attention on regional, national and cultural features. In this area in particular, it is important that we show re- spect for each individual country’s legal and cultural characteristics. This is true above all in dealings with employee representatives and national labor unions but also with national companies in which specific legally defined recognition proceedings prevent union representation. We do not consider it appropriate to “export” Germany’s regulations to other countries. Here, we respect the other forms of cooperation with le- gitimate employee representatives and/or workforces that have developed in the different countries. In our “Guideline for Cooperation with Employee Representatives”, we have made it very clear that we support the individual responsibility of national management bodies and their HR functions in building employee relations. Our Guideline is based on our own Guiding Principles as well as on internationally recognized rules such as the United Nations Global Compact, the OECD guidelines, and the core labor standards issued by the International Labor Organization (ILO). We have established a Global Employee Relations Management (ERM) unit at Group level. It pro- vides guidance and promotes an exchange of experiences for building the diverse employee relationships in various countries. It is also a central contact for all international employee and employer committees and the labor unions. In fall 2010, we will continue to drive and intensify this dialog at the “Employee relations in a connected world” forum. Furthermore, the unit supports and advises on compliance of Group-wide international regulations with labor law. ERM is ultimately responsible for coordination and bundling on the HR side in order to ensure that a smooth, standardized procedure is used to integrate employees who join Deutsche Telekom as a result of international mergers and acquisitions. European Works Council: Employee platform for information and con- sultation in the EU. Through Deutsche Telekom’s European Works Coun- cil (EWC), we maintain an active social partner relationship with the em- ployee representatives of the subsidiaries and affiliated companies in the Member States of the European Union. Two regular EWC meetings and four EWC Board Meetings are held each year; members of the Group Board of Management attend the EWC meetings regularly to join in discussions and provide explanations. In April 2009, the HR unit supported a four-day EWC event in Hungary, which was dedicated to integrating the new EWC mem- bers and defining focus topics for the coming years. Again at this event workshops and discussions took place with employer representatives from several countries with the aim of further intensifying mutual understanding and cooperation. Talent Team Tolerance Technology HR@2012 ”As the partner for business, we deliver top quality.” Talent Agenda ”We win, retain and develop talent in expert and management functions in compliance with our business objectives.” Service culture ”We support transforma- tion into the most highly regarded service company with our professional, business-driven change management.”” Competitive workforce ”We create value-added with end-to-end total workforce management.” Contents