CAHYA MATA SARAWAK SUSTAINABILITY REPORT 2015

29 CAHYA MATA SARAWAK SUSTAINABILITY REPORT 2015 Social: Labour Practices and DecentWork Performance Management Our performance management system provides a framework for employees to be accorded work targets that are linked to the Group’s overall goals and direction. These goals are aligned with business objectives that will have a direct impact on the Group’s performance. Rewards that take the form of performance contract payments or bonuses are linked to performance against these goals. The quantum is calculated based on a combination of individual achievements and overall Company and Group performance. At CMS, our KPI system comprises five main components: • Financial: covering the financial performance of either the Group, Business Division, Business Unit or Head Office • Business Process: covering the individual’s key process issues • Critical Priorities (CP): covering the key personal performance contributions of that employee • Personal Development (PD): covering the number of training programmes (conducted and/or received) and CR hours; and • Demerits: covering matters such as death or permanent disablement of a colleague, failure to highlight risks. The KPI results for the financial year are finalised in the first quarter of the following year. Rewards payments are directly linked to these total performance results. KPI Scoring Methodology Score Achievement Weightage Stretched Outstanding 110% of the KPI item On-Target Exceeds Expectation 100% of the KPI item Threshold Meets Expectation 90% of the KPI item Management Performance Assessment (MPA) The MPA complements the KPIs and is an annual evaluation of the employees’ behavioural competency in delivering their work performance. The assessment also considers employees’ additional responsibilities and work initiatives. It determines the salary increment of employees. In the event an employee fails to achieve a minimum MPA rating of ‘Meets Expectations’, salary increases or bonuses are not considered for that particular year. Sustainability KPI In 2015, CMS introduced its own Sustainability Key Performance Indicator (SKPI) with the aim of managing our long-term environmental performance and eventually improving our business operations. Each Business Division was required to select and to undertake relevant environmental targets for 2016. These targets could relate to materials management, energy management, water management, waste management, air emissions control and biodiversity. All SKPIs for 2016 were agreed at the beginning of the year between the Heads of Divisions and Group Managing Director as part of the annual KPI setting process.