FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 55 DEVELOPING OUR PEOPLE DRIVING OPERATIONAL EFFICIENCY As part of our efforts to streamline the management process and increase accountability, we have implemented a new organisational structure which groups the existing six (6) clusters into three (3) main Sectors: the Plantation Sector, the Logistics and Others (LO) Sector and Sugar Sector. Under this new structure, all palm-related business clusters—Upstream, Downstream, R&D and Agri-Services, and FGV Trading—will be grouped under the Plantation Sector, while the LO Sector comprises of Logistics Cluster and Others (Felda Rubber Industries, Felda Security Services, Felda Engineering, Felda Properties, Felda Prodata Systems and Felda Travel). Sugar Cluster will remain as a standalone sector. Rubber Cluster has been dissolved and transformed into a company under the LO Sector. The new structure is aimed at improving operational and management focus, enhancing clarity and reporting accountability. It will also drive greater synergies by grouping like businesses under a fully integrated value chain. In the Plantation Sector, the fully-integrated palm value chain of upstream, processing and downstream will enable initiatives at each component to be assessed and synthesised by the Group. The new organisational structure was effective as at 2 February 2017. BUILDING CAPABILITIES Group Human Resources (GHR) has taken the lead to transform our people by introducing, reviewing and enhancing our Human Resources (HR) policies and processes in order to bring our organisation to the next level. In our HR strategy, we formulate Strategic Plans and practical value-driven initiatives that capitalise on longer-term opportunities for our Group. During the year, GHR embarked on several initiatives focused on inculcating a high performance culture among its employees. Some of our initiatives included: Talent Management & Succession Planning We have established a talent management and succession planning framework to attract, develop, motivate and retain productive and engaged employees. Our processes ensure that talent decisions are aligned with business strategy and hold leaders accountable for developing high potential employees. Our objectives are: Sustainability • Attract and retain top talent • Secure a pipeline of talent to fill critical jobs at all times • Maximise employees' performance by matching individual career ambitions with business opportunities Costs • Reduce the turnover of high potential/ high performing employees, reducing the need for external consultants • Increase effectiveness of existing talent initiatives by focusing development actions on targeted/identified gaps Risks • Reduce the risk of not having the right successors in place for critical positions • Reduce the risk of not developing employees effectively • Business Continuity Learning and Development In creating value through our human capital, we ensure that our people are ready for the challenges ahead by instituting programmes and support systems to deliver systematic development. In driving a learning culture, we provide development opportunities for staff through our Senior Leaders Programme, Functional Leaders Programme and Front Line Leaders Programme. Our entry level pipeline programmes are designed to develop fresh graduates in order to provide a continuous supply of high-calibre talent to the Group. The trainings are holistic in nature, aiming to enhance professional and behavioural competencies by incorporating elements such as integrity and governance as well as the Group's core values into the syllabus. MANAGEMENT DISCUSSION & ANALYSIS