6 GOVERNANCE 247 The Group has also established a HSSE Management Systems, comprising HSSE Rules, standard operating procedures and processes, to inculcate a strong HSSE culture, behaviour and sustainable HSSE performance. This also includes introducing an enhanced UEM Edgenta HSSE Management System Manual which seeks to make the HSSE execution simpler and more aligned within the Group. The Group has dedicated teams to carry out Quality Assurance / Quality Control, and Health, Safety and Environment activities to ensure continuous improvement of processes and ongoing compliance with the established internal policies and procedures, International Management System Standards, contracts and relevant legal and other requirements. ORGANISATIONAL STRUCTURE The organisational structure of the Group defines the roles, responsibilities and reporting line of the various Committees of the Board; Management of the Corporate Office and subsidiaries; departments and individuals. The Board appoints the Managing Director/Chief Executive Officer of the Group and top management and senior management at critical positions. The positions include but not limited to Chief Financial Officer, Chief People Officer, Chief Digital Officer, Heads of Divisions / Business, as well as holders of mission-critical position. The organisational structure is reviewed regularly to assess its effectiveness and to ensure that it is in line with any changes in business requirements. OPERATING PLANS AND STRATEGIES The Group undertakes a comprehensive annual budgeting and forecasting exercise during the development of business plans for each operating division which are aligned with the 5-year Group Operating Plan, including the short-term and long-term strategic plans. Each Business Division is responsible to carry out a detailed analysis on both current and prior years’ performances and identify the strategic priorities for consideration and commitment in the Group Annual Operating Plan (“AOP”), 5-year Group Operating Plan and Strategic Plan. These form the basis for the development of Key Performance Indicators (“KPIs”) to be included in the Group’s Corporate Scorecard and MD/CEO’s Scorecard which are deliberated and reviewed by the Nomination and Remuneration Committee and subsequently by the Board for approval. The approved AOP, 5-year Group Operating Plan and Strategic Plans are cascaded to the senior management team in each Business Division for planning, monitoring and execution. The Group monitors the business performance of respective Business Divisions through its KPIs and measures them against the approved Group AOP, 5-year Group Operating Plan and Strategic Plan on a regular basis via its General Management Committee meetings and other ad hoc meetings to be carried out by the senior management as and when necessary. Reports and analyses on variances against the Group AOP are prepared and monitored, taking into consideration current and future macro/ microeconomic situations and business landscapes. A report on the year-to-date quarterly Group results and performance is submitted and presented to the Board on a quarterly basis. The management is responsible for identifying and executing any mitigation actions, where necessary. EMPLOYEE’S AUTHORITY AND RESPONSIBILITY Employees’ authorities and responsibilities are detailed out in Job Description, Key Performance Indicators (“KPI”) and Discretionary Authority Limit (“DAL”). The establishment of performance framework serves as a guide for performance setting and monitoring at various levels, covering key financials, customers, internal processes and learning and growth indicators. DISCRETIONARY AUTHORITY LIMITS Clear delegation of authority is defined in the Discretionary Authority Limits (“DAL”), which sets the limit for strategic, operating and capital decisions and expenditures, as well as decision authority for each level of management within the Group, and also the Board’s authority. The DAL is reviewed from time-to-time to ensure effectiveness of strategic and operational executions.
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