EXECUTIVE MASTER

MANAGING PEOPLE & TECHNOLOGY IN PLANTATION INDUSTRY

EXERCISE

INSTRUCTION : REQUIRED TO ANSWER ALL QUESTIONS & SUBMIT IN TAGYARD

Question 1 (5.00 Point)

What are the 4 (four) principles of Good Agricultural Practices (GAP)
GAP Pillar No. 1 : Economic Viability
GAP Pillar No. 2 : Environmental Stability
GAP Pillar No. 3 : Social Acceptability
GAP Pillar No. 4 : Food Safety and Quality

Question 2 (5.00 Point)

What are the roles of Malaysian Palm Oil Board (MPOB) & Malaysian Palm Oil Association
(MPOA)

Roles of Malaysia Palm Oil Board (MPOB)

1. Implement policies and development programs to ensure the viability of the oil palm industry
of Malaysia.
2. Conduct and promote research and development activities relating to the oil palm industry.
3. Regulate, register, co-ordinate and promote all activities relating to the oil palm industry.
4. Develop, promote and commercialize research findings as well as provide technical, advisory
and consultancy services to the oil palm industry.
5. Develop and maintain markets for oil palm products as well as promote efficient marketing.
6. Liaise and co-ordinate with other organizations inside or outside Malaysia to further enhance
the oil palm industry of Malaysia.
7. Plan and implement training programs and human resource development in line with the
needs of the oil palm industry.
8. Be the resource and information center of the oil palm industry including the publication and
dissemination of information on oil palm as well as other oils and fats.

Roles of Malaysian Palm Oil Association (MPOA)

1. Provide representation for the industry at both the domestic and international levels
2. Lobby the special interest and needs of the industry
3. Provide long term strategic thinking and direction
4. Shape R & D policies and priorities
5. Support national marketing and promotion efforts
6. Disseminate industry – relevant information to members

Question 3 (10.00 Point)

Explain in your own words what is “Modernisation of Plantation Operations”
The importance of reducing the requirement for workers in the plantation
industry has not been as critical before as it today due to the various factors,
which we all know too well. Perhaps every plantation organization is trying its
best to mechanize as much as possible to reduce its labour requirement, with
varying degrees of success.
Modernization, which goes beyond mechanization, can result in up to 50%
reduction in labour requirement in addition to higher crop recovery. From a
situation of labour shortage, an organization can be turned around into having
surplus labour. Modern plantation operations involve improvement in several
aspects of estate operations, mechanization being just one of many areas. Apart
from making sure that the machines used and workers employed achieve their
maximum potential, it should also result in lower cost and better work quality
which contribute to higher OER. All these can be achieved by instituting wide-
rang ing reform in a coordinated, systematic and structured manner. Enhancing
labour utilization efficiency, besides improving commercial performance,
requires special attention and concerted effort which also poses exciting
challenges to the operating managers.
It is necessary to critically and analytically look at the various operations with
an open mind and from a broad perspective, independent of the way they have
been carried out all these years. Some of the major areas are: First, each
organization requires a platform from which changes can be launched. This, in
the form of managerial infrastructure, will ensure that operating managers are
guided, in terms of concept, direction and goal within the appropriate
framework.
Second, a smart partnership between employers and employees is vital and need
to be formed so that changes and plans can be implemented more easily. Third,
the estate organizational structure and the way workers are organized need to be
review and streamline into leaner and flatter structures to enhance management
and communication efficiency whilst reducing costs. Fourth, an equitable cost-
effective wage structure should be designed and implemented as the main driver
to the modernization concept. There are a great deal of opportunities which can
be exploited and implemented to significantly improve labour productivity and
consequently reduce the labour requirement. However, the level of success will
depend on how much we are prepared to change and carry it out on a continuous
basis.
Question 4 (10.00 Point)
What are the elements involved in Modernisation of Plantation Operations?

The essential elements require to convert the operation in modernisation is as follows

1. Commitment from the top management

Top management needs to take accountability for the effectiveness of the management system. In
other words, top management need to lead by example. The team need to understand the concept of
modernisation and what are the benefit for the organization. This allows them to focus their efforts on
the best area that they can demonstrate a commitment to adopt the modernisation in the estae
operation entirely.

2. Planning
Planning is the process of thinking regarding the activities required to achieve a desired goal. Planning
is based on foresight, the fundamental capacity for mental time travel. The evolution of forethought,
the capacity to think ahead, is considered to have been a prime mover in human evolution. A detail
planning is require for the operation to modernisation the plantation operation. A clear guide line and
guidance must be provided to all the key person to get better understanding of concept of
modernisation which to be implemented by the company

3. Budget ( CAPEX )
Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical
assets such as property, plants, buildings, technology, or equipment. Capex is often used to undertake
new projects or investments by a company. Certain amount from company provision needs to be
allocated to convert to Modernisation in operation. The amount of money invest is based on the
modernisation scale that planned by the company. The highly modernisation is require more capital
and details study is require to avoid any disruption during the implementation.

4. Training
Training is teaching, or developing in oneself or others, any skills and knowledge or fitness that relate
to specific useful competencies. Training has specific goals of improving one's capability, capacity,
productivity and performance. Regularly training is require to make the overall concept of
modernisation being accept and understand by the manpower in the organization.

5. Continues Improvement Plan (CIP)

A continuous improvement plan is a set of activities designed to bring gradual, ongoing improvement
to products, services, or processes through constant review, measurement, and action. The CIP is one
of the powerful element in organization, as the system is require improvement from time to time
inorder to suit with the current needs.

Question 5 (10.00 Point)

List and Explain the competencies required in the Malaysian plantation industry

Having technical knowledge in agriculture

- This is the basic element that everyone in the plantation industry must have and well verse. To gain
this kind of knowledge is come in may way either by gaining during work experience or to pursue
study at the university level. The concept for plantation cultivation for every crop is the same but
probably the technique of implementation is different. Therefore to get the best practice for benefit of
plantation industry, the technical knowledge is very essential and a must for the everyone to master of
it.

Strong leadership skill

The strong leadership have the ability to communicate well, motivate their team, handle and delegate
responsibilities, listen to feedback, and have the flexibility to solve problems in an ever-changing
workplace. In plantation, we are managing group of people with different back ground, therefore the
good leadership character is needed to set as a example for role of model.

Interest and passion in work

Passion is a state of mind. When we are passionate about a job then we are not only love doing it, but
it seems interesting on what we are doing. Work in plantation require a person to stay focus, put
interest in the daily work and passion with every challenge face in the operation.

In the case of modern Malaysian plantation scenario, there is already

ample legislation in place to create conducive labour relations environment
as well as to enhance industrial and economic growth. Its main functions
are: protection of the economic and social interest of workers, assist in
enhancing national productivity and in promoting and preserving industrial
harmony in the country. It also encourages employers in the private sector
to employ disabled persons, promoting activities to facilitate and improve
the planting environment so as to enhance the participation of unutilized
workforce into the labour market. Certainly, the quality development of
human capital will ensure continued progress for the nation. Hence,
employers are duty-bound to invest in training. However, with a population
of about 25 million and a vast area under cultivation of tropical crops such
as oil palm, rubber, cocoa and paddy covering about 6 million hectares and
a thriving manufacturing, construction and services sectors, intense
competition to recruit suitable and available local workers is the norm.
Today, it is evident that through the process of Malaysianization, the
ownership of plantation equity is predominantly under Malaysian hands.
Thus, conflicting priorities set by decision-makers, both in public and
private sectors at times create a challenging situation as well, which may
be one of the reasons discouraging the local population from being
attracted to plantation life. Overall, there is a shortage of manpower in the
plantation sector. In order to sustain economic growth of the country, the
government has been pragmatic in their approach to fulfill the manpower
needs. Thus, employment of guest workers (generally known as foreign
workers) from approved source countries were allowed in order to alleviate
the shortage of manpower in certain sectors, including the plantation and
construction industry. However, with the influx of migrant workers with
various background and disposition, many challenges are encountered.
There has been some tension between the local community and guest
workers. Cases of abuse and mistreatment attracted the media into
reporting them as sensational news and may have influenced policy-
makers. Policies change frequently, employer’s dependency on guest
workers increases with the area under cultivation. Local workers shun the
plantation sector in favour of better working environment in and around
urban setting. Over reliance on one particular group of guest workers has
proved to bring negative impact. Additionally, of late (05/05/05), the Prime
Minister (PM) had just outlined that addiction to cheap foreign labour as
being one of the three Malaysian few bad habits, If we are not serious
about combating this problem, maybe it is time for us to venture into other
businesses which