FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 HOW WE ARE GOVERNED 107 Information and Monitoring Our performance against our business plan and annual budget is measured and monitored through the following mechanisms: Authority and Responsibility • Organisation Structure The Group has restructured its core operations from six clusters to focus on just four main sectors, namely Plantation Sector, Logistics & Support Business (LSB) Sector, Sugar Sector and Corporate Services Sector whilst Corporate Centre Divisions continue to provide support to the businesses. The revision of organisation structure was undertaken to: i. Strengthen FGV position to move forward and create the best outcomes for long-term success, especially the plantation sector where there will be a fully integrated value chain. ii. Ensure internal structure is geared towards its strategy, to strengthen leadership team and create synergy for the Group to deliver sustainable performance. • Group Discretionary Authority Limits (DAL) In linewith theeffort of improving internal controls,theGroup’s DAL is continuously reviewed and updated to promote organisational efficiency whilst ensuring that it is aligned to the Group's way of doing business and tolerance for risk. The Group DAL establishes a sound framework of authority and accountability within the Group, including the segregation of duties, which facilitates timely, effective and quality decision- making in addition to stricter financial controls. The last review of Group DAL was recently undertaken, and approved by the Board on 22 February 2018. • Employee Approving Authority (EAA) Group EAA was implemented in April 2015 to delineate the delegation of authority in respect of HR related processes to ensure accountability across Business Sectors and Corporate Centre Divisions. The EAA was reviewed holistically and updated effective in April 2017 to ensure alignment with the revised organisation Tableau Online Performance Dashboard Financial and Operational Review Selected key employees use the Tableau as an online performance dashboard tomonitor themonthly business performance, to analyse andmake appropriate business decisions with the view to achieve the Group's organisational goals. Tableau performance dashboard was introduced in April 2016 and covers both financial and operational parameters. The dashboard is reviewed by Group CFO and subsequently presented to EXCO on a monthly basis. The GP/CEO and the Group CFO present the Group Quarterly Financial Statements and the Operational Performance analysis to the Audit Committee and the Board for approval and subsequently released to Bursa Malaysia. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL structure and maintain its relevance to the business and operational needs. • Group Human Resource Policies Group Human Resource Policies have been continually updated and revised throughout 2017 to provide guidelines on the approach adopted by the organisation to its employees concerning various aspects of employment. • Standard Operating Procedures (SOPs) Standard Operating Procedures (SOPs) for Human Resource processes were formulated in late 2016 and implemented since January 2017 to assist employees to carry out operations with the aim of achieving efficiency, quality output and uniformity of performance while reducing miscommunication and failure to comply with Group HR policies and procedures. Competency In order to ensure business sustainability and ensuring continuous supply of competent workforce, we have established FGV Academy. FGV Academy aims to drive HR excellence on the people and processes and create smart integration for all learning and development activities within the Group with the goal of: i. Positively impact the business in the areas of operational excellence, enhancing revenue, cost optimization, talent development and employee engagement; ii. Creating a learning and development branding to boost FGV’s corporate image; and iii. Establish sustainable human capital development programmes that are aligned with FGV’s mission to create value through our human capital.