ORGANIZATIONAL DEVELOPMENT POLICY

PURPOSE: Maintain a process of updating and permanent improvement of the organization, which allows achieving the company’s strategic objectives.

POLICY EXPOSITION

OF THE ORGANIC STRUCTURE

• Management must redesign and subsequently maintain the organic structure of the company focused on the customer, oriented to satisfy their needs and the development of innovative products and services, in line with technological advances.
• Any modification in the organizational structure must be approved by the Board of Directors, based on studies and analysis of organizational processes.
• The structural organization will have autonomous and coordinated internal units, empowered, self-managed and empowered with decision-making capacity; operational areas that execute the guidelines of senior administration and provide feedback.
• To present a restructuring project, a retrospective and prospective organizational process analysis document must be attached, which must contain the pertinent recommendations.
• The creation of organizational units should be limited to the maximum possible. The creation and operation of new units will be feasible to the extent that it entails the creation of new services or the improvement of existing ones, in terms of cost, technology, opportunity and quality.

In the month of November of each year, Management will present an updated study of the organization’s processes to the Board of Directors for analysis and, if applicable, proceed to make changes to the organizational structure; to keep it appropriate to the strategy and the environment. It must also ensure that procedures and manuals are accessible to internal and external users and can be continually renewed.

OF THE ORGANIZATION

• The organization will tend toward decentralization and deconcentration, where branches and agencies have their own support areas. The allocation of resources will be carried out based on demand and productivity. Each branch management or agency head is responsible for their decisions, and they will be accountable to the headquarters.
• The organization must have a delegation manual that allows administrators to focus on the execution of the strategic plan and the competitive analysis of the environment.
• The organization must promote paperless administration using the electronic means available to the company and complementing it with security and new technologies such as electronic signatures.
• The coordination areas must direct their activities to achieve greater interaction between the different areas of specialization of the company.

OF PROCESSES AND PROJECTS

• The units and operational areas of the organization must be related to the processes they carry out, avoiding duplication of functions and attributions. Regardless of the specialization, each process must have a person responsible (process owner) who will be responsible for the efficiency and effectiveness of the process.
• The Management, through Administrative disposition, will nominate the project managers, who will have the full support of the Vice Presidencies, Managements and Units in the fulfillment of their objectives. It may also create commissions (work teams) on a temporary basis and/or committees on a permanent basis, for the solution of specific issues. In all cases, it will define the members, the person in charge and participating units, their purposes, functions to be carried out, time of work. operation and results to be achieved.

OF THE PLANS AND PROGRAMS

• In the month of October of each year, the vice presidents, Managers and heads of Units will present the Operational Plan of their area based on the Strategic Plan, along with the budget for the following year. Subsequently and on a quarterly basis, they will present management progress reports to the executive president on their respective activities and results. These reports will be brought to the attention of the Board of Directors.
• The company’s plans, programs and budgets will be made based on the Company’s Strategic Plan.
• The development of the company’s plans, programs and projects, including the development of new products and services, must obey a comprehensive planning process that guarantees its continuity and completion.

OF MANAGERIAL PERFORMANCE

• The performance of the Executive Presidency and Vice Presidencies will be measured based on management indicators and management reports, which will include the level of compliance with goals established semiannually during the financial period. This information must be brought to the attention of the Board of Directors.
• The performance of management and units will be measured based on management reports and management indicators based on their current situation and goals.

established quarterly during the economic period. If the established goals are not met, management will enter into an observation and audit process.

INTERNAL REGULATION POLICY

PURPOSE: Organize and disseminate the company’s internal regulatory framework.

STATEMENT OF THE POLICY

• It is Carillo’s policy to keep its collaborators informed about the Policies, Regulations, Standards, Processes, Structure and Procedures, so that all personnel have fully identified their role within the organization, their relationship with all areas, and how execute their functions according to the processes and procedures in force.
• Approved organizational documents must be published with the legend “Current” so that users have all those necessary for the performance of their functions, which they can consult, print or copy. Likewise, unapproved organizational documents identified with the Legend “Draft” will be published so that the preliminary draft or project is circulated sufficiently in advance to all agencies so that they can issue their criteria, with a view to considering another vision of the process.
• The documentation structure is integrated as follows:
  • read Level. – The Policies and from these the following levels of documentation are derived.
  • 2nd Level. – It is made up of the Regulations.
  • 3rd Level. – It is made up of Manuals that will contain detailed work instructions to carry out an activity.
• Managers are responsible for documenting their main activities and processes in their operational area, since they have the authority to organize, control, execute and ensure compliance with the applications.
• It is the obligation of the person responsible for each process to ensure that it and the associated documentation are reviewed and kept updated to guarantee the correct execution of the process that has been assigned.
• The Vice Presidency of Organizational Development must ensure that the Procedure Manuals are reviewed and updated at least once a year.
• The preparation of documents related to the processes, structure and regulations will be directed by the Vice Presidency of Organizational Development, in conjunction with the areas involved in the subject matter of documentation. Once its preparation is completed, the Vice Presidency itself will be in charge of its presentation to the Executive Presidency for its approval process.
• The preparation of the Procedure Manuals will be the responsibility of the Managements, which will use the format approved by the Executive Presidency and published on the Intranet. The Vice Presidency of Organizational Development in these cases will act as a facilitator.
• Once the policies and/or regulations are approved by the company’s Board of Directors or the manuals by the executive president, they must be delivered to the Vice Presidency of Organizational Development for the safekeeping of the originals and their respective publication on the Intranet.

SALARY POLICY

PURPOSE: Create an orderly, equitable remuneration system for the organization and employees, which effectively motivates productive work and compliance with the Company’s objectives and goals.

POLICY STATEMENT

• The organization’s remuneration system will obey an intentionally accepted model and its valuation will be in accordance with the local labor market in the telecommunications sector.
• Compliance with the remuneration system will be regulated based on a Scale Application Regulation that will be approved by the Company’s Board of Directors.
• An effort will be made to establish a system of variable standards based on the fulfillment of objectives and goals.
• Salary increases will be made solely as a result of the evaluation of performance and the financial situation of the company, except for the exceptions and legal provisions applicable to the Company. The Administration must strive to comply with international indices in the relationship between personnel expenses and total net income.

Any payment requirement for overtime and travel expenses must comply with a previously established work schedule and based on its cost-benefit; and must be authorized by the Branch Managers and/or by the area Vice Presidents within their respective approved budgets; the Executive President or President of the Board of Directors in the case of a unit that depends on them.

• Under no circumstances will overtime be paid to trusted personnel: Coordinators, Managers, Comptroller, Auditors, Vice Presidents and Executive President.
• Employees subject to special working conditions and schedules, in accordance with international labor standards, will not be able to work overtime and/or supplementary hours in order to protect their health and well-being.

PERSONNEL SELECTION AND HIRING POLICY

PURPOSE: Establish the rules applicable to the selection and hiring activities of human resources that allow choosing suitable people, who adjust to the requirements of the Company and the profiles established to achieve its strategic objectives and ensure its future development.

POLICY STATEMENT

• Every personnel selection process will begin with the preparation of the corresponding “Personnel Requirements”, which must be signed by the Manager and Vice President of the area. This will apply to all cases of vacancies, replacements and creation of new positions. The Executive President will approve the personnel requirements, based on the supporting documentation that justifies the decision. In the case of creations, the authorization of the Board of Directors must also be obtained.
• In the event that a vacancy arises, preference will be given to stable Company personnel who fit the profile of the position, through an internal competition. If the contest is declared void because there is no personnel who meets the required profile, external recruitment sources will be sought.
• No hiring of personnel may be made that has not complied with the selection process.
• For the incorporation of personnel at the Coordination, Management and Unit Head levels, the Human Resources Management will previously confirm with the Vice Presidency of Development the existence of the position within the organizational chart approved by the Board of Directors.
• Vacancies may be replaced only in those positions that perform technical tasks and/or are in profitable business units.

The hiring of new personnel should preferably be carried out under the form of hourly and outsourced contracts.

8) Every employment contract will establish the obligation that once the agreed period expires, the employee undertakes not to enter his or her workplace without express authorization from the Executive President. The employment contract models to be used in the company must be previously approved by the Board of Directors.

• The selection of the candidate to be hired constitutes the exclusive responsibility of the Vice President of the respective area, who will make his decision based on the information provided by the respective selection process.

BUSINESS CAREER PLAN POLICY

PURPOSE: Establish the criteria and standards that allow optimizing the development of human resources within Chariklo, in accordance with their work and professional competencies, in relation to the needs and functional structures of the Company.

POLICY STATEMENT

• The employee development route is horizontal and vertical, so rotation in different positions and positions of the same occupational level will be sought in the first instance, to promote the versatility of the staff and enrich their professional skills, thus generating more solid foundations and ample opportunities for the future performance of those promoted.
• Promotions or promotions are granted when the needs and structures of the Company are satisfied with the profiles of workers who have demonstrated high performance and potential for positions of greater responsibility, meet the academic and experience requirements demanded in the new position.
• The administration, through its Vice Presidents, Managers and Chiefs, will carry out a performance evaluation program at least once a year, which must be delivered in the month of August and will be directly related to the degree of compliance with the organizational objectives, for which which the evaluation will be applied based on objectives met and results achieved in all areas of the company. This will serve as an essential basis for promotions and promotions.
• Any promotion or promotion will include the remuneration of the new position, in accordance with the current salary policy. Prior to securitization, the promoted person must complete a period of three months in the exercise of their position and have won the corresponding merit contest.
• The administration will rationalize the current human resources, through voluntary retirement plans.

VACATION POLICY

PURPOSE: Establish the guideline under which Management must plan the vacations of its workers, in order to promote their necessary annual rest, ensuring that the temporary absence of those does not cause inconvenience to the normal development of activities.

POLICY STATEMENT

• Vacations will be taken based on the annual programming that each Vice Presidency and/or Management will present as part of their annual operating plan.
• When due to compelling needs of the Company, the worker is unable to take vacation time, the immediate head of the area and the worker must agree on a new date for taking vacation and notify Human Resources. In cases of extreme requirement, fully justified by the Vice President of the area and approved by the Executive President, vacations not taken may be compensated in cash, for up to two consecutive periods.

TRAINING POLICY

PURPOSE: Establish guidelines to develop work skills in your workers, which contribute to achieving organizational objectives and the satisfaction of our clients.

STATEMENT OF THE POLICY

• The Annual Training Plan must be supported by the Vice Presidency of Organizational Development and presented by Management for approval of the Board of Directors, based on the Company’s Strategic Plan and the detection of the company’s needs and realities. This Plan will be part of the Company’s Annual Operating Plan.
• All personnel hired or promoted by the company must participate in the Business Induction process for the position to be held.
• Management will seek to train as many workers as possible, in a continuous process, prioritizing the Company’s strategic objectives. The training must be granted in consideration of the activities carried out by the worker and the updating needs of the area, so that their performance can improve.
• For the training of any type of Postgraduate or Higher Program, the company will cover a percentage of it depending on the needs of the company, the cost and the income of the employee. In these cases, a scholarship accrual agreement will be signed with the employee; The worker may opt for a master’s degree only once in his or her business career.
• The worker who participates in the training must commit to comply with the Study Plan and approve it, otherwise he or she must repay, if any, the amount covered by the company, except in the case of unforeseeable circumstances or force majeure.