FGV Annual Integrated Report 2019

70 FGV HOLDINGS BERHAD MANAGING PERFORMANCE TO DRIVE BUSINESS Moving into 2020, the Group will introduce a new performance management framework that is designed to develop a high-performance culture and lead to: • Raising both the individual’s and the organisation’s performance. • Enhancing the capacity and competency of individuals to meet organisational expectations. • Promoting two-way communication for clarifying expectations on roles and accountability. • Encouraging empowerment, motivation and effective reward mechanisms. The Group will also integrate the concept of ‘competency’ into the performance management framework using a 1 to 5 scoring system based on competency proficiency levels. Under this framework, a 60% weightage is given to achieving KPIs/targets and the remaining 40% is assigned to competency values that align with our core values of P.R.I.D.E. This type of assessment will be extended to FGV employees at all levels. Long-Term Incentive Plan We continue to implement our Long-Term Incentive Plan (LTIP) to reward, retain and motivate our employees as they contribute to our growth. Based on the mechanism approved by our Board of Directors in February 2016, 2.67 million shares were vested under the Restricted Share Plan to eligible employees in 2019. The vesting of the shares, expected in three years and based on a ratio of 30:30:40, is dependent on the employees’ performance levels. Talent Development In terms of talent development, we are moving into Phase 3 of FGV’s mission of ‘Creating Value through Our Human Capital’. In 2019, we invested a total of RM3.3 million on various in-house and public training programmes, which resulted in an estimated 15,517 training man-days. The topics covered were broad and varied and focused on technical and competency-based areas with 74% of the training conducted in-house. The Group also invested significant time in organising workshops on our core values of Partnership, Respect, Integrity, Dynamism and Enthusiasm (P.R.I.D.E). HUMAN CAPITAL STRATEGY FRAMEWORK To create value through our Human Capital via transformation of our people towards a High-Performance Culture E n t h u s i a s m P a r t n e r s h i p R e s p e c t I n t e g r i t y D y n a m i s m P e r f o r m R i g h t D e v e l o p R i g h t R e w a r d R i g h t R e c r u i t / R e t a i n R i g h t Business Performance 1 4 2 3 GROUP HUMAN CAPITAL’S MISSION MANAGEMENT DISCUSSION & ANALYSIS STATEMENTS AND ANALYSIS Phase 1: 2015-2016 • Core & Fundamentals Learning & Development • Operational Effectiveness & Excellence Phase 2: 2017-2019 Structured & Systemised Development Phase 3: 2020 onwards Organisational Capability & Learning Culture