TABLES OF CONTENTS

PAGES

1.0 Introduction 2

2.0 Company Profile 3

3.0 Strategic Human Resources Management 5

3.1 Leadership development 6

3.2 Executive training 7

3.3 Succession management 9

3.4 Recruitment 10

3.5 Reward and Benefits 11

3.6 Performance management 12

3.7 Health And Safety at Workplace 13

3.8 Private Retirement Scheme (PRS) 14

4.0 Conclusion And Recommendation 14

REFERENCES

1
1.0 Introduction

Human Resources (HR) has evolved from being a function that merely kept records and
provided administrative services to being a strategic partner in addressing the organization's
business needs. Now, human capital is seen as a key to achieving our strategic business goals
and sustaining growth.

Sime Darby greatest change was the 2007 merger of conglomerate Kumpulan Sime Darby
with plantation giants Golden Hope Plantations and Kumpulan Guthrie. The merger of the
three entities — with a combined total of more than 400 years of operations — was a
transformational journey for all. We had to build a new culture and align policies, procedures
and systems. We had to create one entity from three and hit the ground running, and we had
no option but to succeed — quickly.

In light of the size and complexity of the post-merger organization, we realigned and
reorganized our HR functions into three core components: HR Centre of Expertise (COE),
HR Business Partner and HR Global Services Centre (GSC). These are interrelated and
aligned to enable our HR team to work effectively across business units and functions.

The transformation program is supported by a string of initiatives designed to drive change

and improve performance. They include a new performance management framework and
competency model, talent and succession management programs, a new reward philosophy,
and a learning and development program that addresses competency gaps and aligns with
business needs. Capitalizing on post-merger economies of scale, we've also introduced a
global shared services centre and an integrated talent management system.

These initiatives have equipped the group to face the challenges of strategic and aggressive
growth and expansion, and we aim to strengthen our contribution with further improvements
in HR practices. We're on target to reach the major milestones of our HR road map:
becoming a high-performance organization, using analytics-driven HR strategies, having a
strong leadership pipeline and, most importantly, positioning Sime Darby as the employer of
choice.

2
2.0 Company Profile

Sime Darby Industrial Sdn.Bhd forms part of Sime Darby Industrial Division, a core division
of the multinational Sime Darby Group. Sime Darby Industrial covers the Asia Pacific region
with operations in Australia, Brunei, China, Christmas Island, Hong Kong, Malaysia, the
Maldives, New Caledonia, Papua New Guinea, Singapore and Solomon Islands.

The company operates the Caterpillar heavy equipment business under the Tractors Malaysia
dealership, a leading brand for marketing of premium heavy equipment in Malaysia. Its
partnership with Caterpillar, one of the world’s leading brands, goes back 80 years. Today,
Tractors Malaysia is the exclusive distributor of Caterpillar products and services in Malaysia
and Brunei.

In addition to Caterpillar, Sime Darby Industrial Sdn. Bhd., also distributes leading brands
like Case New Holland and Kubota agricultural tractors, Terberg terminal tractors, Jacobsen
turf care equipment, GE PII Pipeline Solutions, Perkins engines, Striker crushing & screening
equipment and Omega container handlers.

Vision

To be a leading multinational corporation delivering sustainable value to all stakeholders

Mission

 We are committed to developing a winning portfolio of sustainable businesses

 We subscribe to good corporate governance and high ethical values

 We continuously strive to deliver superior financial returns through operational

excellence and high performance standards

 We provide an environment for our people to realize their full potential

3
Core values

1. Respect and Responsibility: At Sime Darby, we will respect and treat each person as
he or she should be treated, share knowledge & responsibility and take ownership and
accountability for all of our business decisions and results. Collectively, we will put
our effort towards building a socially responsible organisation.
2. Excellence: The ultimate aim of Sime Darby and its employees is to achieve the
company's goals with excellence. This means being an industry leader by setting
differentiated best-in-class standards and constantly setting measurable and
challenging goals. Sime Darby has to exceed stakeholder expectations and continue to
be globally competitive.
3. Enterprising: At Sime Darby, we will stretch the horizons of growth for ourselves,
our business and our people to achieve outstanding personal and business results. We
think, act and invest not only for today, but for tomorrow's success. We will seek
value beyond the obvious and will take calculated risk. We will accept, as well as
adapt to changes as we move ahead.
4. Integrity: integrity calls for honesty and transparency in everything that we do. We
will be fair and honest when dealing with our customers, partners and stakeholders,
and ensure that we constantly do what we say, and deliver on our promises to the
people we deal with.

Our business

 Plantation: we are the world's largest listed plantation company and the world's no.1
palm oil originator. We are involved in oil palm cultivation, agribusiness & food, and
research & development
 Property: we are focused on property development with complementary operations
in property investment, asset management hospitality and leisure.
 Motors: we assemble, distribute and are readers for a wide variety of automotive
brands such as BMW, Alfa Romeo, Ford, Land Rover and Hyundai
 Industrial: we hold exclusive Caterpillar distribution rights for the sale and the rental
of Caterpillar heavy equipment, parts and service support.

4
  Energy: we are involved in the operation and maintenance of power plants,
engineering, procurement, installation, construction and commissioning of offshore
platforms and pipeline (EPCIC); system integration and equipment calibration
 Utilities: our current investments include a bulk cargo post, as well as water treatment
business in the Shandong province in China. Closer to home, we are championing
ground water as an alternative source of water to several states in Malaysia
 Healthcare: our current operations comprise of Sime Darby Medical Centre Subang
Jaya, Sime Darby Specialist Centre Megah and Sime Darby College of Nursing &
Health Sciences. Sime Darby Healthcare will continue to build on its strength to play
a crucial role in the country's and region's healthcare system.

3.0 Strategic Human Resources Management

Human Resources at Sime Darby is a key enabler to operationalize the Group’s strategic
goals. The Group’s Human Resources strategy and roadmap was developed to instil and
enhance a performance and value-driven culture for the organisation. The focus of the
Strategy was on fostering strong individual and organisational performance, intensifying
talent and leadership development and putting up effective tools and programmes to identify,
attract and retain needed talent. In addition, to drive sustainable performance, Sime Darby
pays special attention to employee engagement, enhancing workforce effectiveness and
diversity, transparency and strengthening grievance mechanisms.

Sime Darby aims to be an employer of choice. The Group is committed to equal opportunity
for our workforce and do not tolerate discrimination on any grounds. The Group respect its
employees’ legal rights with respect to freedom of association and aim to maintain an open
and effective relationship with its employees. Sime Darby's Human Resources policies
include:

 Non-discrimination on the grounds of colour, race, religion, ethnicity, national origin

or gender

 Zero tolerance towards physical or verbal discriminatory harassment in the workplace

 Protecting the rights of employees to be treated with dignity and respect

5
  Respecting the rights of employees to freedom of association

 Ensuring grievance channels are available

Sustainable HR means human capital strategies and practices that enable us to build a skilled
workforce, with employees who live the core values and are motivated to achieve sustainable
success for the organization.

HR's greatest contributions toward developing a sustainable future for Sime Darby are:

3.1 Leadership development.

We place strong emphasis on developing our people at all levels. Our high performers and
high potentials have developmental opportunities that include classroom training, coaching,
job rotation, project exposure, international assignments and more.

The Group continues to strengthen its succession planning by identifying potential successors
into all critical positions and closing the readiness gap through implementing suitable
intervention plans across the Group. Accelerated Leaders Programme continues to be
implemented as one of the vehicles to equip high capability talent with required leadership
skills. Sime Darby continues to focus on training and development as part of its continuous
learning programme. The Sime Darby Leadership Development Centre organised a total of
226 learning sessions for more than 4,000 participants in FY2014. The mandatory Core
Executive Programme was expanded to Indonesia and China to enhance the leadership skills
of employees. Customer

Services Excellence Programmes were delivered to more than 400 participants with the aim
of inspiring business performance and service levels. The Group also partnered with four
Malaysian consulting companies (Accenture, AON Hewitt, Frost & Sullivan and Towers
Watson) to roll out a talent exchange programme.

Sime Darby’s Long Term Incentive Plan (LTIP) was rolled out in FY2014. The LTIP is a
long-term performance-based share/cash scheme designed to recognise employees’
contributions and reward them for their commitment and support in achieving the Company’s
long-term goals. The LTIP complements the Group’s Total Rewards Framework, which also
consists of Base Salary, Benefits and Short Term Incentive Plan (STIP) or Annual Bonus, and
is considered as one of the most effective retention tools in Talent Management.

6
3.2 Executive training.

We train our leaders in sustainability orientation, one of our seven leadership competencies.
We would like every leader, from the most junior to the most senior, to participate in a
sustainability project. And we're expanding this program to include our offices in Indonesia,
China, Hong Kong and Thailand.

Sime Darby Industrial has been investing in training for employees as well as educating
customers on technical and management skills. It stands by its vision in giving commitment
to develop people training programmes that meet the industry standards and customers’
needs.

Graduate Programmes Available - The Sime Darby Management Trainee Programme

The SD MTP is Sime Darby’s premium programme offered to outstanding fresh graduates. It
is a six-month comprehensive programme combining classroom trainings, project
management, Corporate Responsibility (CR) projects, entrepreneurship, rotational
assignments across Sime Darby’s business divisions and international exposure at world
renowned business schools. Our trainees will be exposed to programmes which will enhance
their experience and competitive advantage.

Programme Structure

The Sime Darby MTP has four main components:

 Centralised Training and Classroom Sessions:

The classroom session consists of various modules ranging from technical to soft skills
enhancement. These sessions are meant to smoothen the transition process of Management
Trainees from an academic environment to a high performance workplace. It also helps them
build a strong foundation in managerial practice and introduces them to the corporate culture
at Sime Darby which every employees is expected to embrace.

7
 Rotational Assignments at Divisions Within Sime Darby

In line with the main objective of the programme, Management Trainees will be exposed to
various functions in the various business divisions of Sime Darby. Rotational assignments
will provide participants with hands-on experience and will enable them to gain practical
knowledge. This will also assist them to adapt to the various workplace cultures.

 International Exposure at World Renowned Business School

Selected Management Trainees will be given the opportunity to attend a programme at a

world renowned business-school. With credentials and extensive industry and consulting
experience, faculty members invited to the programme will give participants insights into
various business and management fields.

 Project Management

Management Trainees will be given projects based on real-life business issues guided by an
experienced supervisor. These projects will enhance participants’ ability to develop proposals
and solutions to business issues within the Sime Darby Group. Projects are meant to help
Management Trainees sharpen their business acumen and managerial skills and put teamwork
into action.

Benefits

 This programme designed to maximize the potential in young talent and nurturing
them as future leaders.
 Trainees will be exposed to programmes which will enhance their experience and
competitive advantage.
 Opportunity to be a part of projects based on real-life business issues guided by an
experienced supervisor.

8
Sime Darby Industrial Academy - Malaysia

Established in July 2002, Sime Darby Industrial Academy caters to the training and
development needs of its staff and external customers. It operates as a training and
development centre for technical and management skills. The Academy is an approved
National Vocational Training Centre, recognized by the Skills Development Department
Ministry of Human Resources, Malaysia.

All programmes in Sime Darby Industrial Academy Sdn.Bhd., comply with the learning and
practical modules required by the National Occupational Skills Standard (NOSS) and follows
the certification system of the Jabatan Pembangunan Kemahiran (JPK) as stipulated by
Ministry of Human Resources, Malaysia.

Sime Darby Industrial Academy also provides international accredited programmes from
established institutions such as City & Guilds of London Institute and the Institute of Motor
Industry Programmes – UK.   

Other programmes offered at Sime Darby Industrial Academy are:

 Technical Skills

 Management Skills

 Vocational Training

 English Courses

3.3 Succession management.

We have a rigorous succession management program that includes a robust, transparent

process of assessing talent to ensure we have the right people in the right position at the right
time. . This helps to minimise disruption to the business and ensure business continuity into

9
the future. We’re working on succession planning to strengthen our leadership bench, as we
identify our top talent at all levels. We develop our young, high-potential employees via job
rotation, project exposure, coaching and classroom training. Getting our talent agenda right is
key to our expansion.

3.4 Recruitment.

We are proud to be the employer of choice for over 100,000 employees. We are committed to
nurturing and growing our talent as their dedication and contributions are instrumental in
driving our businesses.

Quite simply, we look for individuals who are passionate and thrive on working in an
atmosphere of diversity and high-performance. We look at individuals who yearn to be a part
of building nations, creating economies and bringing a difference to the environment and
society that we live in. We are excited to attract, motivate, develop and engage our talents to
become outstanding professionals and dynamic citizens of the world who embraces our
values of integrity, respect and responsibility, excellence and enterprise.

Sime Darby planning seeks to maintain and improve an organization’s ability to achieve
corporate objectives by developing strategies which are designed to increase the present and
future contribution manpower. In Sime Darby they were use both of the recruitment process,
Sime Darby is recruiting candidates to participate in our Management Apprenticeship
Program. They provide opportunity to work alongside specialists in specific fields over a
period of 12 months in order to gain experience and be equipped with relevant skill sets.
Sime Darby uses the Jobstreet.com as the main platform to recruit the maximum potential
staff from external resources.

Here is a summary of our typical recruitment process.

Please note that this process would usually take about 4 weeks.

1. When you see a role advertised, you can apply in the Search & Apply area of this site.
Alternatively, be proactive and register your details in advance, so if a role comes up
that we think may suit you we can contact you. Once you have applied for a role, you
should expect to hear from us within 5 days of the application close date noted on the
ad.

10
 2. If you have made our first interview short-list, we will be in touch to make a time for
you to come in and meet us. If you have not made our short-list this time around, we
will let you know via email.

3. During your first interview we will also ask you to complete an application form that
includes work experience, health and safety declarations etc.

4. If we would like you to progress to the next step, we may ask you to complete some
psychometric testing. Don't be afraid, it's not painful! We just want to understand how
you think and gauge the fit within our team etc.

5. We will now be down to the final 2-3 people. We will go into more detail about the
role, answer any further questions you may have, and where possible show you
through the business.

6. If we progress to doing reference checks then you know things are getting close. We
need to be able to talk to at least one past or present manager to run through your
employment history. Or, if this is your first job, to at least one of your most recent
teachers. Generally three references are conducted.

7. At this stage either our department manager, or someone from our HR team, will call
you to discuss salary, benefits and start date. Assuming we can come to a verbal
agreement, we will then send you an employment agreement either by post or email.
Once this is returned to us... you're hired!

3.5 Reward and Benefits

Throughout our talent management practices, Sime Darby strives to promote a culture of
performance and accountability. This is also true for our reward practices. We firmly believe
in the importance of adequately rewarding high performers and achievers. We have revised
our reward philosophy so that our average total reward/remuneration is at the top percentile
of the market. It is a balanced, competitive reward program. Throughout our talent
management practices, Sime Darby strives to promote a culture of performance and
accountability. This is also true for our reward practices. We firmly believe in the importance
of adequately rewarding high performers and achievers.

11
Rewards not only come in the form of compensation. They are also managed through our
variable pay system (performance bonus). In addition, we are constantly reviewing and
benchmarking against best practices the benefits package that we offer to our employees.

In addition to maintaining competitive remuneration packages which we constantly review

and benchmark against best practices, we also provide a number of other staff benefits and
nonfinancial rewards.

Throughout the Group, there are also a variety of rewards and awards given to employees
and/or operating units that excel in their job or operations.

The benefits programme in the Group is very comprehensive. Here is a sample of some of
our benefits:

 Employer's Employee Provident Fund (EPF) Contribution of up to 16% (for

Malaysia operations) Annual Leave averaging 22 days per year
 Maternity Leave of 60 days on full pay
 Insurance coverage
 Interest Subsidy on housing loans
 Car Allowances under our Senior Management Car Scheme
 Motor Vehicle Loans
 Employee discounts for products within Sime Darby flagship.
 Outpatient medical and hospitalization coverage for employees and family
members
 Financial assistance in furthering your education
 Loyal service awards

3.6 Performance management.

Our performance management framework, which we call Ensuring Performance

Sustainability (EPS), is used throughout the organization. The components of EPS are the
alignment and linking of key performance indicators and competencies to strategic business
goals, the calibration of performance against a fixed performance curve and differentiated
total rewards for top performers. The global roll-out of the Sime Darby Performance

12
Management System was completed . The universal approach aims to ensure that individual
key performance indicators are aligned to Divisional and Group strategy, and provides a more
structured approach to managing poor performance through the Performance Improvement
Programme (PIP). Sime Darby monitors the performance of its employees twice a year
through midyear and year-end reviews. The mid-year review is used to identify and mitigate
gaps in individual performance.

3.7 Health And Safety at Workplace

Sime Darby's ultimate goal is Zero Harm. In FY 2014 the Group aims to reduce total
recordable frequency rates by 15 per cent, on FY 2013 performance.

The safety and health of employees, contractors and communities is key to the way the Group
works, and is reflected in its Principles. Sime Darby's sustainability governance framework
prioritises safety and health as a key measure of the Group's performance. Its ultimate goal is
to achieve zero harm.

Safety and health management systems and programmes are established at the Group and
Divisional level for accident prevention, continuous improvement of systems and to improve
competency. Sime Darby adopts external certification schemes, such as the Occupational
Health & Safety Assessment Series (OSHAS) 180001, for the key facilities to strengthen
management systems.

At the Group level, the Safety Alert messaging system is a means to effectively manage
incidents and facilitate internal platforms to share lessons learnt throughout the business. The
Group expect and support line managers to achieve a minimum level of competency by
completing relevant training such as the Environmental, Safety and Health (ESH)
Competency & Certification Programme, 2nd Level Major Accident Investigation Skill &
Reporting. Group level representatives also monitor the scope and effectiveness of the
Divisions/ ESH Management systems and supper Divisional representatives through a
quarterly engagement programme and regular workplace safety walkabouts.

At the Divisional level a range of programmes are in place to manage key risks and
competencies. The Group's approach to risk-based competency and capability building

13
programmes assesses performance trends and identifies areas of safety focus such as
transport, engineering projects and behavioural-based safety.

The Group recognise that good management systems and robust operating procedures alone,
will not allow the Group to achieve the safety and health goal of zero harm. An
uncompromising safety and health culture is crucial for Sime Darby to attain zero harm.

3.8 Private Retirement Scheme (PRS)

Private Retirement Scheme (PRS) is a voluntary long-term investment scheme designed to

help individuals accumulate savings for retirement. PRS seek to enhance choices available
for all Malaysians, whether employed or self-employed, to voluntarily supplement their
retirement savings under a well-structured and regulated environment. Each PRS offers a
choice of retirement funds from which individuals may choose to invest in based on their
own retirement needs, goals and risk appetite. The fund options under a PRS are intended to
enhance long-term returns for members within a regulated framework. Assets of each PRS
are segregated from the PRS Provider and held by independent Scheme Trustee under a trust.

4.0 Conclusion And Recommendation

We use several approaches. At the group level, we focus on developing group-wide HR

frameworks, processes and policies. We solicit feedback from the various HR business
partners, and we iron out issues as much as possible before implementing programs.

The professionals in our three HR components have periodic dialogues, which are vital to
keeping all teams aware of any derailment in practices and sorting out impending HR
operational issues. Also, the HR business partners have a matrix reporting structure to the
executive vice president of Group HR. This provides both visibility and alignment between
group and divisional HR practices.

We're working on up-skilling our HR team by requiring executives to attend a course on the
entire spectrum of Sime Darby's HR operations. They will attend specific HR modules that
are relevant to their roles. We're also identifying HR certification that will deepen our COE
employees' understanding of their areas, so they can better serve as internal consultants.

14
There are several important characteristics that HR practitioners need in order to be effective.

They need to have a good understanding of the business in order to prescribe practical HR
solutions, and they must be able to demonstrate clearly how HR operations affect the
business. This enables HR practitioners to be trusted advisers and to help propel the
organization forward. Also, they must be knowledgeable about HR practices both globally
and locally, so they can tailor their advice and solutions to the local context.

HR practitioners should be able to interpret the broad range of HR data available. By

analyzing trends revealed by the data, HR professionals can explore new ways of improving
workers' effectiveness.

And HR must engage with the business community, proactively communicate with the
businesses and seek to understand their operational issues. This is necessary in order for HR
to deliver value-added services. My advice: Formulate good working relationships with the
business folks.

15
REFERENCES

Agarwala, T. (2008). Strategic human resource management. Arth Anvesan, 71.

Bratton, J. (2007). Strategic human resource management. Human Resource Management

I\Ccinde, Der: John Bratton,-Gold, Jeffrey, London: Palgrave Macmillan, London, 37–71.

Golding, N. (2010). Strategic human resource management. Beardwell, J. And Claydon.

Iqbal, D., Tayyab, F., Farmanullah, S., & Yousaf Khan, N. (2012). CONTEMPORARY
ISSUES IN HRM: A REVIEW FROM 2007-2011 IN HRM
REVIEW. INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN
BUSINESS, 4(3).

Litvinov, A. (2012). Human Resource Management and its alignment to the strategy of a
Company. from http://www.unicorncollege.cz/european-it-center/litvinov-
alexander/attachments/Bachelor_Thesis_Litvinov.pdf

Mbongaya Ivo, A. (2006). “Best Perspectives to Human Resource Management”. from

http://www.africancentreforcommunity.com/articles- Dateien/Best%20Perspectives%20to
%20human%20resource%20management%20by%20Arrey%20Mbongaya%20Ivo.pdf

"SimeDarby financial report" (PDF). Retrieved 16 December 2014.

https://www.towerswatson.com/en-MY/Insights/Newsletters/Global/strategy-at-
work/2014/10-questions-for-zulkifli-zainal-abidin

http://www.thestar.com.my/Business/Business-News/2014/11/17/Sime-Darby-
ranks-high-in-bestinclass-talent-management

16