ese annual report book 2

Erasmus School of Economics

2011

REPORT ANNUAL

02

www.ese.eur.nl/annual_report

ESE Today Recent assessment reports show an above-average score for our bachelor’s and master’s degree courses and our research programmes, indicating that Erasmus School of Economics is regionally, nationally and internationally recognised. It is a position to be proud of, but also a position which we firmly believe we can further expand upon. The sharp focus on economics, the desire to achieve excellence (measurable by the Schools’ ranking in the academic world) and a sound financial basis are permanent fixtures on our priority list. At the same time, we actively want to build on our reputation and increase our impact.

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This booklet gives a general survey of all the features that make up our School. We start with an organisational chart and give the facts and figures for 04

2011. Furthermore, we reflect on the essence of our workforce and provide information on our financial results and changes in personnel costs in 2011.

www.ese.eur.nl/annual_report

The organisational chart shows the structure of Erasmus School of Economics (ESE) and the relationships and relative ranks of its various divisions. ESE has a clear focus on economics. It is the only school in the Netherlands which explicitly educates business economists. All academic staff is involved in both research and education, allowing ESE to thrive.

ESE's organisational chart

A. ESE's ORGANISATIONAL CHART

The internal ESE organisation is essentially designed per scientific section, but also contains a matrix organisation. The organisation of ESE’s primary processes is designed along two axes, known as the scientific axis and the educational axis.

At the heart of the scientific/knowledge axis are the departments; education management is contained within the educational axis. ESE’s activities are mainly organised and directed from within its four departments as well as educational management. ESE aims to group all its fundamental research in its two research schools accredited by the Royal Netherlands Academy of Arts and Science (KNAW), and these are Tinbergen Institute (TI) and Erasmus Research Institute of Management (ERIM). Both research institutes are involved in implementing the School’s research policies. For its contract funding (education and research), ESE is supported by a group of private limited companies which are, in turn, part of EUR Holding BV.

Dean

Education Management

Administration Office ESE

Education

School Council Tinbergen Institute

Examination Board

Research Erasmus Research Institute of Management

Research Advisory Board Education Committees Departments expertise

Economics

Business Economics

Econometrics

Applied Economics

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ESE at a glance

B. ESE AT A GLANCE This paragraph gives a condensed overview of the student population of Erasmus School of Economics (ESE) numbers, information about our staff, research programmes, affiliated institutes and financial position. Examine the statistics which are testament to the strength and stability of our School!

Students

2007/08 2008/09 2009/10 2010/11 2011/12

Registered students

4258 4248 4470 4648 4662

BSc Economics and Business Economics

2409

2304

2411

2437

2280

363

428

452

531

542 259

BSc Econometrics and Operations Research BSc Economics and Taxation

250

267

300

310

BSc Economics and Informatics

234

214

153

101

52

1245

1244

1360

1392

1306

131

159

184

203

242 100

MSc Economics and Business Economics MSc Econometrics and Management Science MSc Economics and Taxation 06

98

96

98

101

139

111

112

111

83

MSc Accounting, Auditing and Control

110

196

Incoming exchange students

118

98

93

100

145

Outgoing exchange students

41

73

97

70

65

MSc Economics and Informatics

Some students may be registered for more than one programme within ESE

Education programmes 4 Bachelor programmes (BSc)

BSc Economics and Business Economics

BSc Econometrics and Operations Research

BSc Economics and Taxation

BSc Economics and Informatics

5 Master programmes (MSc)

MSc Economics and Business

MSc Econometrics and Management Science

MSc Economics and Taxation

MSc Economics and Informatics

MSc Accounting, Auditing and Control

3 Master post experience programmes

Executive master of Finance and Control

Master City Developer

Maritime Economics and Logistics

2 Research Masters (MSc)

MSc/MPhil in Economics

MSc/MPhil in Business Research

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ESE at a glance

Research programmes

7 research programmes (since 2011)

• Econometrics • Health and Behaviour • International Economics • Management Science • Managerial Economics • Marketing • Finance & Accounting

Membership Research Schools (%) Fellows/members of TI and/or ERIM

2008

2009

2010

2011

Target

61.2% 71% 69% 76% 80%

Number of PhD theses Number of PhD theses

2008

2009

2010

2011

Target

26 15 21 30 25

Finance Finance (x 1000)

2008

2009

2010

2011

Income 27,249 29,043 32,352 33,368

Results 1,683 1,518 2,151 1,694

Personnel ESE Personnel (31/12)

2008

2009

2010

2011

Number 361 405 431 452 FTE

285.7

280

295.1

305.8

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ESE at a glance

Affiliated institutes Research Schools Erasmus Research Institute of Management (ERIM)

www.erim.nl

Tinbergen Institute (TI)

www.tinbergen.nl

Collaboration with RSM and Addesium Erasmus Centre for Strategic Philanthropy

www.ecsp.nl

Associate Limited Companies

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Erasmus Academie

www.erasmusacademie.nl

Erasmus University Centre for Contract Research and Business Support (ERBS)

www.eur.nl/informatie_voor/bedrijven/ eurholdingbv/werkmaatschappijen/erbs/

Erasmus School of Accounting & Assurance (ESAA)

www.esaa.nl

Fiscaal Economisch Instituut (FEI)

www.feibv.nl

Institute for Housing and Urban Development Studies (IHS, 50%)

www.ihs.nl

Instituut voor Sales en Account Management (ISAM)

www.isam.nl

Erasmus SmartPort Rotterdam

www.maritimeeconomics.com/

Regionale Economie, Haven- en Vervoerseconomie (RHV)

www.eur.nl/rhv/

Sociaal-Economisch Onderzoek Rotterdam BV (SEOR)

www.seor.nl

Stichting Maatschappij en Onderneming (Instituut SMO)

www.smo.nl

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ESE at a glance 09

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Function Aleksandra Stuip is the Education Marketing Officer at the Education Service Centre, where she helps to coordinate ESE's marketing activities.

Background As a member of the Education Service Centre, Aleksandra is at the centre of all administrative processes that take place at Erasmus School of Economics. Since the introduction of the competency-management system, she knows exactly what is expected of her.

Aleksandra Stuip I am originally from Riga, and I started as a third-year IBEB student six years ago. I enjoyed the atmosphere at ESE so much that I decided to stay and work for this School, first as a student assistant, then as a programme coordinator for the IBEB programme, and eventually as an Education Marketing Officer at the Education Service Centre. Coming from Latvia, I can truly say that the Netherlands is a nice place to live and that ESE is a great place to work. I don’t know that many people who wake up in the morning and are as happy as I am to be able to go to work. The competency-management system makes working here even better.

"Sometimes, the way others see you is so very different from the way you think people perceive you. In this sense the competency-management system can be a real eye-opener."

It makes it very clear what is expected from

to answer questions, you can really have

you and what you can expect from others.

a conversation on how things are going.

This is all put down in writing. And if you

The system provides both the employee

need to develop a certain competency,

and manager with a common language.

you are stimulated to do so and you are

It takes away a lot of background noise

handed the tools to actually do it. The focus

in the communication process. Now, my

on several core competencies helps you to

manager is more able to assist me in my

focus on your own development as well.

development. For instance, after identifying persuasiveness as the competency I should

Assertiveness

improve the most, I started a personal

One of the traits I am working on right

coaching course in consultation with my

now is persuasiveness. This surprised me

manager. I have already noticed a change in

at first as I thought I was already very

myself and my reactions at work.

persuasive. However, I come from a very different culture, with different visions on

In addition to that, the feedback training

persuasiveness and holding your ground in

we got also helped me to become more

discussions. Fortunately, each competency

assertive and helps me to better discuss

is written down so you know exactly what

matters with colleagues. Instead of creating

the organisation means by, for instance,

tension, the feedback system opens

persuasiveness. This helps a lot in the Result

everything up to discussion in a positive

& Development meeting you have with

setting. 

your superior. Instead of just going there

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Human Resources Annual Report

C. HUMAN RESOURCES ANNUAL REPORT Our employees add up to 70% of our operating budget and are the single greatest investment Erasmus School of Economics (ESE) makes in any one resource. We would like to provide an environment in which respect, equal opportunities, and diversity are promoted, and everyone is encouraged to achieve its full potential. We aspire to create a sense of belonging and a culture in which the views of students and employees are highly appreciated. We encourage staff to take responsibilities associated with the School and to contribute to the greater Rotterdam area, on a voluntary basis or as a profession. In order to achieve a community based on these essential values, effective and visible leadership within the School is a core principle.

I. Information about ESE’s workforce The purpose of this section is to provide an overview of the workforce of Erasmus School of Economics (ESE). It profiles a range of key human resource indicators including the numbers of staff with a breakdown according to 12

function (academic and support staff), employment type (continuing/fixedterm), gender, age profile and nationality.

www.ese.eur.nl/annual_report

The past year almost all existing vacancies were filled. On the reference date, 31 December 2010, 431 people are employed at ESE. On this same date in 2011 452 people were appointed.

Personnel development 2008 - 2011

Human Resources Annual Report

Development of personnel 2008-2011

FTE 500 450 400 350 300 250 200 150 100 50 0

2008 2009 2010 2011 13

Number of ESE staff

FTE (total)

361

405

431

452

258.7

280

295.1

305.1

Number of female staff

113

134

137

147

FTE (female)

78.4

88.4

94.7

99

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Human Resources Annual Report

While the number of full, endowed and associate professors is staying stable, the number of assistant professors and PhD students is increasing. Support staff is also remaining constant. The influx in the Mature Talent project has ended, in 2012 the last Mature Talents are expected to defend their PhD thesis. In the category student-assistants also research-assistants are included.

Total FTE per job category 2008 - 2011 100 90 80 70 60 50 40 30 20 10 0 14

Professor Associate Assistent Mature PhD- Student Support professor professor Talent student assistent Staff FTE 2008

27.2 14 61.1 5.4 69.4 19.3 62.3

FTE 2009

35.6 5.7 58 7.6 80.6 26.5 67

FTE 2010 FTE 2011

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9 64 5.8 87.9 31.5 63

32.7 9.5 70.9

2 91.4 36.5 62.3

Because of the fact that last year the number of assistent professors employed in a tenure track and PhD students has increased more than the other categories, the average age of ESE staff is still getting younger. Last year the average age was 38.5, now it is 38.3.

Human Resources Annual Report

ESE still getting younger

Age structure 2008 - 2011 100 90 80 70 60 50 40 30 20 10 0

< 26

26 - 30

31 - 40

41 - 50

51 - 60

> 61 15

2008

32 60 77 53 62 8

2009

40 68 79 53 56 11

2010

33 79 88 44 59 13

2011

29 86 87 44 57 13

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Human Resources Annual Report

II. Diversity programmes Our task as a university is to welcome everyone to join our community based on their talents. Erasmus School of Economics (ESE) is convinced that progress in ensuring that the composition of our staff reflects our student population is vital to our success as a School. Diversity provides students and staff with the opportunity to learn from students and scientists who differ from them, encourages critical thinking, and creates opportunities to challenge stereotyped preconceptions. It also helps us to learn to communicate effectively with people from varied backgrounds and fosters mutual respect.

Top 10

On 31 December 2011 ESE had 37 different nationalities employed.

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Nationality number

The number of female staff in the category assistant

Dutch

professors increased from 24% to 27% and in the

Chinese

342 22

category PhD students from 24% to 28%. By several

German

18

projects (i.e. mentoring programme, exemption of

Belgian

10

teaching tasks after maternity leave) ESE facilitates

Turkish

10

the career path of female staff. The goal is that in

Italian

6

due time the number in male and female staff will

Romanian

6

get more in balance. In the support staff where

Greek

4

female staff is dominant, the male staff has increased

Polish

4

from 34% to 36%.

Lithuanian

4

Relative number of female/male staff per job category 100% 80% 60% 40% 20% 0%

Professor Associate Assistent Mature PhD- Student Support professor professor Talent student assistent Staff 2011 female 2011 male

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1% 11% 27% 100% 28% 30% 64% 99% 89% 73% 0% 72% 70% 36%

As part of Erasmus University Rotterdamâ&#x20AC;&#x2122;s Diversity Programme, the Ministry of Education, Culture and Science has awarded a substantial grant to ESE for its Research Traineeship Programme. The aim of this programme is to interest excellent students from different cultural backgrounds in pursuing an academic career. In 2011, the first nine participants in the programme received

Human Resources Annual Report

Research Traineeship Programme successful

a certificate. During the 2010-2011 academic year, seven new participants were recruited and paired with the Schoolâ&#x20AC;&#x2122;s top researchers. The students are offered a job as a student assistant and receive hands-on training in an inspiring research environment. They also attend a three weekly seminar series on research methods, presentation techniques, academic career prospects and cultural aspects, relevant to those interested in pursuing academic research.

Three mature talents defend PhD thesis in 2011 ESE aims to increase the number of talented women among its academic staff.

Therefore, in 2007 the School launched the Mature Talent Project. This project is aimed at women who already have a few years of working experience in business or with governmental organisations, and who want to acquire a PhD. In 2010, three mature talents obtained a PhD degree, of whom two will pursue their career in a tenure track position (the third returned to a job in the financial world). The last three mature talents in this project are expected to defend their PhD theses in 2012.

Coaching programme for female assistant professors Also with a view to increasing the number of talented women, in 2011 ESE in collaboration with EUR, started a mentoring programme for women. Female assistant professors can opt to have a mentor. This mentor can also be a member of another School. Experiences at other universities have taught us that employees are more aware of their career goals, experience personal growth, take more targeted actions and develop higher ambitions through mentoring.

The mentors of ESE staff are also positive about coaching women, as this enables them to achieve an overview of the specific career situation of women and become more skilled in coaching. Mentors are associate or full professors.

Exemption from teaching after maternity leave For women, pregnancy can lead to delays in their career. Yet deadlines for publishing are firm in this phase of their career in particular. This year, ESE in partnership with EUR, started a pilot to give female employees a partial exemption from teaching after their maternity leave. They can use the extra time to make up the lost research time. Four women used the pilot to get an exemption from teaching. www.ese.eur.nl/annual_report

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Function Milky Viola Gonzales has worked for the administrative office of ESEâ&#x20AC;&#x2122;s Department of Economics since January 2009. As such, she is part of the communication hub for both students and teachers.

Background As a member of the secretarial staff, Milky is one of the ESE employees working with the new competencymanagement system. She sees it as a useful tool for improving herself.

Milky Viola Gonzalez Before working at ESE, I worked in the private sector and it was a bit of a change to work in a more governmental organisation. With less focus on the next money-making opportunity, I have a much better view of what I am doing, why I am doing it and for whom. I realise that my work contributes to the quality of education and research, which is more satisfying than just helping to make profits. When ESE introduced the competency-management system, I got a bit nervous, especially about the feedback my colleagues were going to give me. However, we were very well informed about the aspects of the system and were trained in the new ways of giving and receiving feedback.

"I would advise all my colleagues within Erasmus University Rotterdam to have a feedback discussion with a co-worker: it really helps you to look at yourself in a different way."

Even though I normally do not like change

Self-knowledge

so much, the new system allows me to take

The competency management system

more control of my own development. It

provides you with specific elements of your

helps that the system is really well organised.

performance. This helps you to be consciously

Eventually I used the system not only to

aware of what you are doing and how you

communicate better with my direct superiors,

are developing. When I got feedback on my

but also to improve my communications with

performance, my colleague could focus her

co-workers.

comments on a specific competency and provided me with concrete examples of how I showed that competency in my day-to-day work. This was a real eye-opener for me. I notice now that I can really concentrate on that aspect, and improve myself in a much more focused manner than before. For me personally, getting feedback is easier than giving it. I can take the feedback given to me and use it in a positive way, but when you give feedback, you never know whether your colleague is going to take it in a constructive matter or take it as a personal assault.

Fortunately, my colleagues here at ESE take the feedback very well. I believe this is because of the very clear structure of the competency management system, and the associated feedback training.

I really hope ESE continues to offer the training on a regular basis: at least once a year would be fine to keep the feedback skills fresh in mind. It would be a shame to let such a good initiative slip into the background.

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Human Resources Annual Report

III. Employee health and well-being Accomplishing goals is a collective responsibility. We believe that a healthy and positive working environment at all levels rewards staff members for their effort, thereby making it possible for them to perform at their best.

Erasmus School of Economics (ESE) therefore wants to create an environment which is based on mutual respect and integrity. We want to create and retain a committed workforce and invest in a safe, healthy, supportive, caring, and empowering environment. The idea is to create an atmosphere that motivates all our staff members and guides them towards excellence. And by playing an active role, we aim to successfully enhance ESE’s position as an international centre of academic excellence.

ESE-bility day 2011 on board paddle steamer “De Majesteit” Many members of our staff have mentioned that they consider some social events during the year an important aspect of ESE’s community. For this reason, every year ESE organises the Christmas Drinks. At this event, we reward excellent staff members for their efforts and performance over the past year. This year, we also welcomed our staff on board the paddle steamer “De Majesteit”. De Majesteit is moored on the Maasboulevard (no. 100), and has been one of the

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biggest and most luxurious paddle steamers in Europe since 1926. In 1999, after spending decades traversing the continent as a cruise ship, on 14 June 2011, it was transformed into a seagoing event location. At 4.30 p.m. the moorings were cast off and the party set sail both metaphorically and literally! The boat returned to dock at 6.00 p.m. on the Maasboulevard to pick up any academic staff whose teaching commitments prevented them from attending from the very start. The boat then once again took to the water, this time with a hot and cold buffet for our staff.

ESE finished in second place on Erasmus Vitality Sport Day 2011 On Tuesday September 27th, the Erasmus Vitality Sport Day took place for the fourth year in a row. This year there were more participants, more sport activities, different shirts and the event was held at a different venue. After the opening by Bart Straatman MSc (member of the University’s Executive Board) and the warming-up, the teams rotated between the various activities, such as indoor football, badminton, pub games, choreo and king of the hill. The final event was a joint relay race. With the completion of the sport programme, the participants had a break to relax their muscles and enjoy drinks and an outstanding buffet provided by the chef of the Erasmus Sport Centre. ESE finished in second place out of 13 teams!

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In 2011, the absenteeism rate was 1.57%. This is a little bit lower than the percentage for 2010 and lower than the rate for EUR as a whole (2.39%).

Traditionally, absenteeism is higher amongst support staff than amongst academic staff. In 2011, the figures are nearly the same in both groups. The duration of absences was longer than in 2010. This is attributable to the fact

Human Resources Annual Report

Absence management has high priority at ESE

that a small number of people in both groups of employees were ill for a longer period of time. Within the support staff we can conclude that if we correct the number by ignoring the long duration absence, the short duration absence has decreased considerably. The employees who were ill for a longer period were closely supervised during the reintegration process.

Absence percentage ESE Absense percentage ESE

2008

2009

2010

2011

(EUR) 2011

Academic Staff

1.82 1.83 1.39 1.46

1.53

Support Staff

4.09 1.49 2.81 1.82

3.47

Total

2.34 1.72 1.85 1.57

2.39

Absense of ESE staff due illness in 2011

21

4,5 4,0

4,1

3,5 2,8

3,0 2,3

2,5

1,7

2,0 1,5

1,8

1,9

1,8 1,6

1,8 1,5

1,0

1,4

1,5

0,5 0

Academic Staff

2008 2009 2010 2011

Support Staff Total

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Human Resources Annual Report

Plan of action Risk Assessment & Evaluation successfully completed In 2011, the Risk Assessment & Evaluation (commonly known as RA&E) was assessed, examining whether ESE’s workplace poses any risks and/or whether these can affect employee health in any way. Those measures in the Plan of Action 2010 over which ESE has influence, were dealt with in 2011. For 2012, specific attention will be devoted to safety and communication issues, related to the “Working on Tomorrow's Campus” project (dealing with a substantial infrastructural improvement).

High scores for ESE in professionalism, teamwork and fair play Scores for professionalism, teamwork and fair play in the 2010 performance appraisals (carried out in 2011) show that overall all three items have scored an average of 7.9 or more. In the table below, employees have scored departments and managers have scored employees on Professionalism, Teamwork and Fair Play.

Scores ESE 2010 in our core values

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Year

Professionalism

Teamwork

Fair Play

2008 Employees

8.1

7.9

8.2

8.7

8.6

8.7

2009 Employees

8.4

8.0

8.4

Managers

8.5

8.5

8.9

2010 Employees

Managers

8.3

8.3

8.5

8.5

8.7

8.8

Managers

There are very few low scores in professionalism, teamwork and fair play. "The argumentation for those lower scores remains very diverse and no common factor can be observed," according to the Dean of ESE, Professor Philip Hans Franses. Special attention was given to the lower scores in the annual discussion of the performance appraisal reports between the directors of departments and the Dean.

Extended opening hours for the H-building at weekends As the extended opening hours for the H-building are very much appreciated by our employees, ESE has decided to continue this service. Mainly our foreign employees welcome these extended opening hours. The H-building will be open structurally on Saturdays and Sundays from 8.00 a.m. to 5.30 p.m. throughout the academic year.

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An inaugural lecture is a momentous occasion in an academic staff member’s career. Inaugural lectures provide newly-appointed professors with the opportunity to inform colleagues, the campus community and the general public of their work to date, including current research and future plans. In honour of retiring professors, Erasmus School of Economics (ESE) likes a lecture

Human Resources Annual Report

IV. Inaugural addresses and farewell lectures in 2011

to form part of the farewell ceremony. In 2010, three inaugural ceremonies and one farewell lecture were held.

Professor Richard Paap: Let's Make Things More Difficult On Friday January 21st, Dr Richard Paap, Endowed Professor of Econometrics and Marketing at Erasmus School of Economics, and Research fellow of the Tinbergen Institute and Member of ERIM, held his inaugural address entitled “Let's Make Things More Difficult”.

The focus of the lecture was the use of the results of econometric analyses for decision problems. The first part of the lecture discussed the importance of correct statements about uncertainty in econometric forecasts. The second part focused on future challenges for econometricians when the results of econometric research are used in practice. Dr Richard Paap’s main interest is Bayesian Econometrics with applications in the field of macro-economics and marketing.

Professor Dinand Webbink: From Evidence Towards Impact On Friday February 11th, Dr Dinand Webbink, Endowed Professor of Policy Evaluation with specific focus on Strategic philanthropy, health and education at Erasmus School of Economics, and associated with the Erasmus Centre for Strategic Philanthropy (ECSP), delivered his inaugural speech entitled “From Evidence Towards Impact”.

The topic addressed by this chair was determining the effects of policy and projects in the fields of charity, health and education. The first part of the inaugural address dealt with modern methods of measuring the impact of policy, based on experimental or quasi-experimental research techniques. The second part focused on the relationship between research and policy since, in practice, research results are not always relied on when formulating policy.

Dinand Webbink also works for the Netherlands Bureau for Economic Policy Analysis (CPB) and is programme leader at the Top Institute for Evidence Based Education Research (TIER). In addition, Professor Webbink is Research fellow at Tinbergen Institute and at IZA (Institute for the Study of Labor) in Bonn. www.ese.eur.nl/annual_report

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Human Resources Annual Report

Professor Jan Peter Balkenende: About governance and social responsibility: what is the next step?

On Thursday March 24th, Dr Jan Peter Balkenende argued in his inaugural address that governance is a way to help build a fair society and a contribution to the good of the community. It is a bridge towards a world in which every person matters, with full awareness of sustainability. A world with a perspective that reaches explicitly beyond the demands of here and now. Professor Balkenende advocates bearing social responsibility primarily from the heart of the organisation: an intrinsic sense of social responsibility - not merely based on concern for the company’s reputation. With this address, Professor Jan Peter Balkenende formally accepted the Chair of Governance, Institutions and Internationalization at Erasmus School of Economics and Erasmus School of Law of Erasmus University Rotterdam. He studied Dutch Law and Economic and Social History and is a former prime minister of the Netherlands. Dr Balkenende has received honorary doctorates from universities in New York, Budapest, Tokyo and Seoul.

Farewell lecture from Professor Rien van Hoepen: 40 years of jurisdiction regarding annual accounts

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A ceremony was held at ESE on Friday January 14th, to commemorate the retirement of Dr Rien van Hoepen, Professor of Business Economics and Auditing. His farewell lecture was titled “40 years of jurisdiction regarding annual accounts”. Rien van Hoepen graduated with a cum laude degree in business economics from the Nederlandsche Economische Hogeschool (NEH) in 1972. In 1975 he passed his accountancy examination cum laude at Erasmus University Rotterdam (the successor to the NEH), where he later obtained a cum laude PhD in 1981. In 1982 he was appointed as professor of Business Economics and Auditing. Outside the EUR, Van Hoepen has held many other positions for several years, including formerly being a partner at Deloitte Accountants, as well as membership of the Dutch Accounting Standard Board and the Economic Competition Committee. Since 1986 he has also been an adviser to the Enterprise Chamber of the Amsterdam Court of Appeal.

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Erasmus School of Economics (ESE) aims to create an energetic, inspiring and encouraging environment for its staff members, where the expression of appreciation is part of our culture. We also like to increase ESE’s involvement in the Rotterdam community.

Human Resources Annual Report

V. ESE and its surroundings

Successful appreciation brunch for supporting staff On Thursday June 9th, a number of ESE staff together with colleagues from various support services and companies enjoyed a brunch in Restaurant Siena, organised by ESE. The aim of this brunch was for the School to express its great appreciation for the day-to-day work of all employees who provide important services to ESE, such as security personnel and invigilators, GOM cleaning staff, post and logistics staff and employees of Albron Catering. A number of ESE employees hosted the event. Dean professor Philip Hans Franses spoke appreciatively on behalf of ESE about the efforts and involvement of all invited guests.

Refurbishing Weena playground near Rotterdam Central Station On June 7th 2011, in connection with their yearly outing and organised by Rotterdam Cares, a large group from ESE’s Administration Office and the Education Service Centre at ESE spent the afternoon refurbishing a playground near Rotterdam Central Station. Weena playground includes a clubhouse and toy library where local children can play, and be themselves from morning till night 365 days a year. Much of the apparatus at Weena playground was given a fresh coat of paint, the playground was weeded and many other small jobs completed; duties which the playground personnel did not had the time to do.

It was Rotterdam Cares’ first major activity.

About 50 ESE staff members set to work enthusiastically on that sunny day and the result was smiles all around. Firstly among the participants themselves, who gained a great sense of satisfaction from the refurbishment, but also from those who have taken on the day-to-day management of the playground. Noone had expected so much work to get done in a single afternoon and everyone was very happy with the result.

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Human Resources Annual Report

VI. Talent management Building capacity ensures the continuous supply of talent in order to achieve current and future goals and objectives. It is important that we have effective recruitment strategies and that our performance management processes include training and development opportunities as well as career development initiatives. Consequently, interest in learning and development opportunities remains high at Erasmus School of Economics. Under this theme ESE will enable academic staff and senior management to develop leadership qualities, also in relation to succession planning strategies.

Dutch Language Courses for ESE’s international staff ESE’s staff is becoming increasingly international. The percentage of employees of non-Dutch origin was 26.6% (2010: 24.3%) of all ESE staff as of 31 December 2011. Because some of these staff members intend to stay in the Netherlands, Dutch language courses are offered to help them integrate into Dutch society more easily. In 2009-2010, 14 employees followed a Dutch course and this number increased in 2010-2011 to 35 employees; in the summer of 2011, 19 employees also followed an intensive summer course.

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Introductory meetings for ESE’s new staff In October 2006, ESE began organising introductory meetings for new staff.

A total of three introductory meetings were held in 2011. The programme contains both an informative component, with speeches by the Dean and Vice Dean on the history, strategy and goals of the School, some videos about specific programmes and an interactive component with a speed-dating session and a quiz. This is followed by a campus tour. During the tour participants receive practical information about the facilities and residents of the campus.

Furthermore, the most interesting campus artworks are highlighted. The programme is completed with a lunch. These introductory meetings are evaluated positively by participants. They indicate that it is a good introduction to ESE, the campus and their colleagues.

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To prepare all staff members properly for their tasks, the Basic Qualifications for Education and the Academic Leadership Management Course form part of the training programme for Academic Staff. In 2011, a total of 4 assistant professors qualified for the Basic Teaching Qualification and 6 faculty members were exempted from the course. A total of 8 staff members attended the Academic

Human Resources Annual Report

Training programmes to prepare staff members for their tasks

Leadership Management Course. A course “English for administrative staff” was offered to several members of our support staff in 2011. Several support staff members also attended a computer skills course.

Competence management for support staff and ‘growth’ techniques for academic staff After a successful pilot for competence management within the Education Service Centre in 2010, the system was further rolled out for all ESE support staff this year.

All staff members were informed about the goal of competence management, and how they can use it in their personal growth and career. To gain information about the competencies they need for their position, employees were supposed to set out a 360˚ feedback. In last year’s pilot, employees mentioned how difficult it is to give and receive feedback. All support staff was consequently able to attend a feedback training course. This training was evaluated extraordinarily well. Some quotes from the evaluation: “What a difference it can make whether you listen well and objectively, and ask supplementary questions!” and “If you don’t say anything, you cannot expect others to know what you want!”.

However, some form of follow-up is highly desirable and feedback training will also be provided next year. Competence management was allocated a prominent role within the Performance & Development interviews. To enable managers to conduct these interviews properly, all managers were trained for these interviews. Growth was emphasised more within the Performance & Development interview for scientific staff. These managers were all trained in these techniques.

Assertive and Authentic Academics Our society is changing, people have become more assertive and this also applies to our student population. How can we deal with them without losing authenticity? With a view to developing more skills for keeping ahead or showing more authority while interacting with students, this year and as a pilot, we started the Assertive and Authentic Academics training (continuing in 2012).

Eight members of our academic staff attended this course. www.ese.eur.nl/annual_report

27

28

Function Taoying FarenhorstYuan came to the Netherlands as a Master student and is currently an Assistant Professor in Operations Research at the Department of Econometrics.

Background Born in China, Taoying came to the Netherlands as an exchange student. She started taking Dutch classes during her PhD and continues to do so today. She encourages all foreign PhD candidates to take part in the Dutch classes provided

by ESE.

Taoying Farenhorst-Yuan When I started working as a PhD candidate, I realised that learning Dutch would be the best way to bond with my co-workers and build up a social life here. Especially outside the university, it is important to speak Dutch to really connect to people. All foreign PhD candidates that want to learn Dutch should take the course. It helps a lot, especially to discipline yourself to do the homework. As a PhD candidate, there is always so much to do, and self-study will always end up bottom of your priority list. However, it will get even more hectic once you have obtained your doctorate, and it takes time to learn Dutch.

"Speaking Dutch has helped me a lot in forming social ties with colleagues and people outside the university and it also helps me to explain things to Dutch students."

Even after a number of years of classes,

The incrowd

I still go there, particularly to improve

I took over seven courses to learn Dutch,

my pronunciation. Besides my work as a

from beginner level to advanced. Each course

researcher, I also teach courses at ESE to

involved two lessons a week. The best are

both Master and Bachelor students. Being

the intensive courses given in summer. Over

able to explain myself in Dutch really makes

a course of three weeks, we intensively focus

the difference for many students, especially

on learning Dutch. It is a difficult language

the Bachelor students.

to learn, and it takes effort to complete the courses. However, it helped me to establish personal connections with the people around me. For instance, before I could have a real conversation in Dutch, when I went for lunch with colleagues everybody needed to switch to English. My colleagues were very nice and would start speaking English on my behalf, but during the conversation, the language would slip from English back into Dutch. Nowadays, I speak mostly Dutch with my colleagues. I noticed that when you speak to people in their own language, the atmosphere of the conversation is very different. You are much more part of the incrowd.

This better atmosphere also applies to my contact with students. Being able to speak to them in their own language enables me to create a better classroom atmosphere, and make students more comfortable with the material that I teach.

29

Financial Annual Report

D. FINANCIAL ANNUAL REPORT In this paragraph Erasmus School of Economics (ESE) shares its positive financial outcomes for the year 2011. Though financial challenges remain, our results for the past year demonstrate that ESE is a financially strong institute. This provides an important foundation for achieving our goals: investing in excellence in order to develop our position among the world’s top Schools of Economics.

I. Introduction ESE ended the calendar year 2011 with a positive financial result (k€ 1,694).

ESE has achieved a reserve position of k€ 7,448 which is 30% from the budget transferred (k€ 25,159). The financial situation is good and fits within the midterm planning of ESE. The development in income includes an increase in budget transferred (first flow) as well an increase in other income. The rise in first flow budget is mainly the result of an increase of non-EER students.

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The rise in other income is the result of: • an increase in second flow of funds (projects funded by the Netherlands Organization for Scientific Research, NWO); • more contract funding (partnerships with third parties); • projects financed by private limited companies linked to ESE.

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(in Euros x 1000)

2011

2010

Financial Annual Report

II. Profit & Loss Statement 2011

(1) Budget transferred

Education based funding

Matching second flow of funds

Other budget transferred

Total budget

22,440

22,198

174

161

2,545

2,659

25,159

25,018

(2) Other income

Within EUR

1,194

962

Within EUR Holding BV

1,257

1,121

External

Second flow of funds

Third flow of funds

Total other income Total income

1,415

1,264

4,343

3,987

8,209

7,334

33,368

32,352

(3) Personnel costs

Wages and Salaries

15,156

15,209

Pension expenses

2,025

1,924

Social charges

1,440

1,427

Other staff expenses

1,658

1,567

Temporary workers and claimants

1,579

1,320

21,858

21,447

Total personnel costs

Depreciation

60

121

Other expenses (4) Within EUR

3,146

2,686

(5) Within EUR Holding BV

1,992

1,767

(6) External

4,618

4,180

Total other expenses

9,757

8,633

31,674

30,201

Total expenses Result Total

2.34 1.72

1,694 1.85

2,151 1.57 2.39

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Financial Annual Report

III. Balance sheet as at 31 December 2011 (in Euros x 1000) Assets

31-12-2011

31-12-2010

Fixed assets

(7) Tangible fixed assets

206

116

(8) Financial fixed assets

110

Current assets

(9) Receivables, prepayments and accrued income

1,916

3,923

Liquid assets

10,710 7,857

Total assets

12,832

Liabilities

12,007

(10) Equity capital

(11) Provisions

(12) Long-term debts

7,448

5,821

17

0

612

545

Current liabilities

(13) Debts, accruals and deferred income

Total liabilities 32

www.ese.eur.nl/annual_report

4,755

5,641

12,832

12,007

General The profit and loss statement and balance sheet of ESE are shown. Financial

Financial Annual Report

IV. Notes to the balance sheet and the profit & loss statement

transactions with other organisational divisions of EUR and with private limited companies affiliated with ESE, which are subsidiaries of EUR Holding BV, are shown separately. The assets and liabilities are valued in accordance with the EURâ&#x20AC;&#x2122;s accounting principles 1.

1. Budget transferred The budget transferred comprises the share of the government contribution from the Ministry of Education, Culture and Science received by EUR and allocated to Erasmus School of Economics (the first flow of funds).

The model-based allocated budget consists partly of lump-sum amounts for teaching and research. Another part of this model-based budget is dependent on the volume realised on certain performance parameters, such as the number of first-year students, the number of bachelor and master degrees and the number of doctorates awarded. When calculating the performance-dependent amounts, three-year averages are taken. This means that the funds allocated to Erasmus School of Economics depends on the average of the parameters over the three years prior to the financial year.

Besides the model-based budget, ESE is also allocated the matching of EUR of Veni/Vidi/Vici grants as budget (matching second flow of funds).

The other budgetary allocations concern amongst other things, travel costs, non-EER tuition fees, development of minors, the so called Alpha / Gamma funds, and just as in previous years contribution from the Executive Board to reform ESE.

1 Reference is made to the annual financial report of EUR. www.ese.eur.nl/annual_report

33

Financial Annual Report

2. Other income The other income realised within EUR and EUR Holding BV. relates to the use of staff of ESE in activities of other organisational divisions of EUR (Group). These are primarily: • Providing education for the International Business Administration of Rotterdam School of Management (RSM) and for Health Economics of iBMG. • Payments from the private limited companies affiliated to ESE for: o Directorships of ESE staff at affiliated private limited companies; o Use of accommodation and from delivery of other services (such as I&A) o The use of ESE staff in post-initial education and commercial research projects. o Contributions from EUR Holding BV. for the results of supporting private limited companies.

The income from the second flow of funds in 2011 comes largely from income from Veni/Vidi/Vici grants and research grants for PhD/students of NWO. ESE will continue to receive income directly from the third flow of funds. The third flow funds come from contracts with parties such as the European Union,

34

but also from tuition fees, chair funding and secondments. Besides these forms of income, the third flow of funds comprises contributions from the Free University of Amsterdam (VU) and the University of Amsterdam (UvA) towards the funding of Tinbergen Institute.

3. Personnel costs The increase of wages and salaries, pension expenses and social charges increases are primarily due to a rise in PhD’s and student assistants. There is a shift from Personnel costs to Other expenses within EUR due to the transition of personnel to the Shared service centre HR&F. The increase of Other staff expenses is caused by tax measures (30% arrangement). ESE hired more external visiting professors, financed by Alpha / Gamma financial resources.

4. Other expenses within EUR The increase of these costs is mainly due to costs from RSM for a NWO project, the hiring of staff from SSC HR&F (formerly wages costs), research costs ISS and higher costs for the SSC ICT. In 2011, 25% of these expenses comprised payments to ERIM. Accommodation expenses paid by ESE make up 9% of these expenses, the use of other central services and facilities make up 31%, the contribution to the University Library www.ese.eur.nl/annual_report

EUR. As far as accommodation is concerned, it should be noted that ESE is housed in a building owned by EUR. ESE only pays accommodation expenses if it uses more than the standard floor area.

Financial Annual Report

is 6% and costs from other Schools make up 29% of the other expenses within

5. Other expenses within the EUR Holding BV. These are mostly the expenses of hiring staff from the private limited companies for teaching purposes at School of Economics. In 2011 ESE made more costs for the development of new courses.

6. Other external expenses About 34% of these expenses in 2011 were expenses of Tinbergen Institute (teaching expenses for MPhil students and PhD students, as well as expenses relating to (and for facilitating) research activities. In addition, 5% of the expenses were IT expenses, 3% for office equipment, 16% for business travel expenses, conference fees and representational expenses, 4% for outsourced activities such as printing and typesetting and legal advice and 38% for other office and general expenses.

The increase of other external expenses is mainly the result of removal costs of Tinbergen Institute, a rise in expenses for data collection and costs for the VKS projects.

7. Tangible fixed assets ESE adopts the rule that only investments in fixed assets with an acquisition price of more than kâ&#x201A;Ź 12 are capitalised and written off over their economic life.

The first depreciation is made in the year of purchase. The depreciation period depends on the type of equipment and varies from 3 to 25 years.

The book value of the tangible fixed assets covers mostly equipment. (in Euros x 1000) Acquisition price 2010 Decline in value and depreciation at end 2010 Book value at end 2010

Furniture and equipment 745 - 629 116

Investments 2011

147

Depreciation 2011

- 57

Book value at end 2011

206

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35

Financial Annual Report

8. Financial fixed assets These were solely loans to EUR Holding BV. to finance the equity capital of a number of private limited companies affiliated to ESE 2. In 2011 EUR Holding BV. has redeemed these loans.

9. Receivables, prepayments and accrued income Receivables are valued at nominal value. A provision for bad debts is made for receivables on external parties.

Included under Receivables are: (in Euros x 1000)

2011

2010

Debtors external

597

576

Debtors EUR and EUR group 3

598 3026

Other internal receivables EUR Prepayments and accrued income Total

26

39

695

282

1,916

3,923

Receivables 2011 and 2010 36

10. Equity capital The positive annual result of kâ&#x201A;Ź 1,694 has led to a positive equity capital of kâ&#x201A;Ź 7,448. (in Euros x 1000)

2011

2010

Equity capital at end 2010

5,821

3,721

Result of financial year (2011)

1,693

2,151

- 67

- 51

7,448

5,821

Direct capital movements 4 Book value at end 2011

2 See page 8 for an overview of the private limited companies.

3 The debtors ranked as EUR and EUR group are receivables from other organisational divisions of the EUR and private limited

companies under the EUR Holding BV.

4 The direct capital movement concerns the transfer, in accordance with university policy, of a part of the annual result of the

Tinbergen Institute, for which ESE is the budget holder, to the long-term debt.

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Financial Annual Report

11. Provisions In 2011 a provision was made for expected losses of projects.

12. Long-term debts These relate to the share of VU and UvA in the assets of Tinbergen Institute. This procedure is the result of the cooperative agreement between the participating parties (EUR, VU and UvA) which says that if the institute closes down, the remaining financial reserves and assets will be divided among the three Schools, in the proportion that had been adopted until then for payment of the fixed contributions of ESE to the institution.

13. Debts, accruals and deferred income The composition of the short-term debts is as follows: (in Euros x 1000)

2011

2010

Instalments received in advance for work in progress

1,064

1,453

376

583

External creditors EUR and EUR group creditors 5

1,791 1,587

Other internal debts EUR

93

Other external debts

67

891 3

Accruals and deferred income

1,366

1,124

Total

4,755

5,641

Short term debts 2011 and 2010

5 The creditors ranked as EUR and EUR group are receivables from other organisational divisions of EUR and operating

companies under the EUR Holding BV. www.ese.eur.nl/annual_report

37

ESE Colofon Publicatie Erasmus School of Economics Erasmus Universiteit Rotterdam P.O. Box 1738, NL-3000 DR Rotterdam +31 (0)10 408 1377 info@ese.eur.nl www.ese.eur.nl Ontwerp & opmaak SNOEKX Projectmanagement Productie Debondt grafimedia communicatie Fotografie Hollandse Hoogte, Erik Fecken, Michelle Muus, Beeldbank EUR, CanStockPhoto Oplage 800 exemplaren

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ANNUAL 2 0 11

REPORT The digital version of our annual report can be found on our website: www.ese.eur.nl/annual_report. Here you can find more information on several subjects as well as photo impressions and film clips. Additional information, photo impressions and film clips are indicated by

P.O. Box 1738 | NL-3000 DR Rotterdam | T +31 (0)10 408 1377 | E info@ese.eur.nl

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