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Cahya Mata Sarawak Berhad

44

OurCMS

Blog

OurCMS

Blog is the Group’s in-house blog covering all events, corporate

news and feature stories about CMS. The objective of the blog is to serve

as an easily accessible and comprehensive source of information for our

employees all over Sarawak.

Other Forms of Engagement

Other forms of employee engagement occur regularly throughout

the year. In 2016, engagement activities included regular Head

Office Departments and Business Divisions operational meetings,

memorandum, notices, intranet updates, circulars, workers’ gatherings,

office lunches, dinners and company outings.

PERFORMANCE MANAGEMENT

To ensure optimum performance across all our Divisions, the Group

employs a performance management system which aligns our employees

work targets with CMS’ goals, direction and business objectives that will

directly impact theGroup’s performance. As incentives for our employees,

the system features a reward system that awards performance contract

payments or bonuses when one of the Group’s goals is achieved.

CMS’ KPI System

At CMS, our Key Performance Indicator (KPI) system comprises five main

components:

The KPI system is emphasised Group-wide, with all KPIs for senior

management tabled to the Nomination & Remuneration Committee. For

employees at the managerial level and above, the financial component

comprises 60% of their total KPI; meanwhile the critical priorities

component comprises at least 45% of the total KPI for employees at the

executive level and below.

All Sustainability Key Performance Indicators undertaken by Divisions

and the Group Human Resources Department take a holistic approach

covering:

Financial

Business

Process

Critical

Priorities

Personal

Development

Demerits

Covering financial performance in the

relevant mix according to grade, role

and location of the Group, Business

Division, Business Unit or Head Office

Covering the individual’s key process

issues

Covering thekeypersonal performance

contributions of that employee

Covering the number of training

programmes (conducted and/

or received) and Corporate Social

Responsibilities hours

Covering matters such as the death or

permanent disablement of a colleague

or 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 System 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 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 minimumMPA 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 2017. These targets could relate to materials

management, energy management, water management, waste

management, air emissions control and biodiversity. All SKPIs for 2017

were decided between the Head of Divisions and Group Managing

Director, Dato’ Richard Curtis as part of the annual KPI setting process.

Economic

(financial

performance)

Environment

(tree planting/

air quality/

recycling)

Social

(Corporate Social

Responsibility)

Long Service Awards

Length of

Service

(Years)

Cash Value of Award (RM)

Long Service

Leave

(Working Days)

2015

2016

10 years

3,000

3,000

2

15 years

3,500

3,500

3

20 years

4,000

4,000

4

25 years

4,500

6,000

5

30 years

5,000

8,000

6

35 years

5,500

10,000

7

Social: Labour Practices and Decent Work