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    A Human Resource Proposal for Research Partnership in Nantong

    MP 4008

    Sem 2 2013/2014

    For

    Prof Khong Poh Wah

    Presented by

    Ng Hai Woon Alwin

    U1021910E

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    ContentsAbout Us ................................................................................................................................................. 3

    1. Long Term Strategy: Sustainability & Viability .................................................................................... 6

    1.1Analyzing and Designing Jobs ........................................................................................................ 6

    1.2 Talent Acquisition and Training .................................................................................................... 6

    1.3 Managing performance ................................................................................................................ 8

    1.4 Maintaining positive employee relations ..................................................................................... 9

    1.5 Establishing and administering personnel policies ..................................................................... 10

    1.6 Managing and using human resource data ................................................................................ 10

    1.7 Ensure compliance with labour laws .......................................................................................... 10

    1.8 Support organizations strategy.................................................................................................. 10

    2. Our Immediate Actions ..................................................................................................................... 11

    2.1 Communicating Policies .............................................................................................................. 11

    2.2 Designing and Analyzing Jobs ..................................................................................................... 11

    2.3 Planning for HR ........................................................................................................................... 13

    2.4 Compensation and Benefits of R&D ........................................................................................... 14

    2.5 Preparing Employees for Successful Overseas Assignment ........................................................ 15

    3. Changes to our Human Resources .................................................................................................... 19

    3.1 Forecasting and Planning ............................................................................................................ 19

    3.2 Training and Development .......................................................................................................... 19

    3.3 Appraisal of Performance ........................................................................................................... 19

    3.4 Compensation and Benefits ........................................................................................................ 19

    3.5 Communication of HR Policies .................................................................................................... 19

    4. Conclusion ......................................................................................................................................... 20

    5. References ........................................................................................................................................ 21

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    About UsA family-owned enterprise founded in 1985, we have grown to a global leader in oil & gas

    remanufacturing.

    (Courtesy of RollsRoyce & Wartsila)

    We are now looking forward to our first ever research partnership with our global industry partners.

    The partnership in a state-of-the-art R&D facility with our contract manufacturer in Nantong, China,

    reflects our relentless commitment towards innovation and industrial leadership in oil & gas

    remanufacturing.

    Nantong Research Facility (Courtesy of Keppel Seghers, China, 2012)

    Combining the expertise of top researchers from Singapore and China, we are expecting research

    output to triple by 2016.

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    Our R&D Corporate Structure

    Our current R&D department covers Surface Enhancement and Product Verification.

    Headed by our Chief Technical Officer (CTO), the coming research partnership will allow us to cover

    4 broad research themes consisting of Repair & Restoration, Surface Enhancement, Product

    Verification and Enabling Technology by 2016.

    Chief Technical

    Officer (CTO)

    Project Director Project Director

    (Partner)

    Project Managers

    Re air & Restoration

    Principal Scientists, Principal Engineers & Team

    Project Managers

    Product Verification

    Project Managers

    Surface Enhancement

    Project Managers

    Enabling Technology

    Project Managers

    Surface Enhancement

    Principal Scientists, Principal Engineers & Team

    Project Managers

    Product Verification

    R & D Director

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    Enhanced Research Capabilities

    The Singapore facilities will continue to focus on Product Verification and Surface Enhancement

    themes.

    Singapore Facility (Courtesy of Manufacturing Technology Centre, 2014)

    Our Nantong facility will cover the scope on Repair & Restoration and Enabling Technology. These

    projects will be shared equally between our Project Teams and that of our partners.

    The HR teams responsibilityin this partnership is to realize the research manpower needs for our

    share of projects in our Nantong facility. Our report will focus on the HR needs of this research

    partnership.

    Researchers Exchanging Ideas (Courtesy of KOM Annual Report 2012)

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    Hiring R&D talents in China is beyond what my HR team has been exposed to thus far in this

    company. We will discuss how HR consultants can help us in the short run in Section 2.4.2. In the

    long run, our department envisions a robust plan to attract these talents. We will learn from our

    partner and consultants on the manners in which to hire Chinese undergraduates to fill our Junior

    Engineer positions in the Nantong facility.

    My HR team has been granted a lavish budget to establish good relationships with Chinese

    government officials in charge ofto work towards collaboration between our

    Nantong facility and leading Chinese research institutions under the Thousand Talent Scheme in

    Figure 1.2.1b. The collaboration is likely to increase our companys exposure to top R&D talents in

    China and hopefully attract a steady supply of high quality candidates for our senior research

    positions in our Nantong facility.

    Figure 1.2.1b(Courtesy of Thousand Talent Scheme, Suzhou, 2012)

    1.2.2 Developing employees

    My HR team will roll out plans for workshops and training clinics for the R&D employees. My

    company will continue to sponsor the upgrading of our employees by sending our research staff to

    relevant seminars and expo around the world.

    For employees in the Nantong facility, we will include political courses aimed at inculcating

    employees with the correct political views, as well as scientific-cultural topics to equip employees

    with basic knowledge of relevance to daily life. For high-performing Chinese employees, company-

    sponsored education leave will be granted to pursue further training. A continuing trend in China,

    company sponsored education is considered a great privilege and employees who return from the

    educational training trips are typically given a raise or a promotion (Huang & Cullen, 2001; Nyaw,

    1995). Communication on the career path and planning of Nantong employees on these form of

    training has to be conveyed clearly so as to align their expectations with my HR teams strategy.

    Ultimately, the HR team aims to brand our company into a choice employer for research talents.

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    1.3 Managing performance

    The attributes of a good employee as depicted in the leadership grid in Figure 1.3

    Figure 1.3 (Khong P W, 2014)

    The HR team will appraise R&D employees based on the traits of the bottom left of the leadership

    grid.

    1.3.1 Performance Management System

    We hope to achieve an employee appraisal system that satisfies 5 criteria:

    1. Fit with Strategy: The system should guide employee behaviour and attitudes towards our

    companys research strategy, goals and culture.

    2.

    Validity: It measures all relevant aspects of the performance of our R&D staff, and

    disregards irrelevant aspects. A system that is able to filter out contamination and deficiency

    in performance measurement is desired.

    3. Reliability: Interrater and Test-retest reliability must be met for the system to be robust

    4. Acceptability: The method of appraisal must be perceived a fair for the employees it is

    applied to.

    5. Specific feedback: The measure must be able to tell an employee the actions to take to

    improve and how to contribute more towards the companys business.

    1.3.2 Methods of Measurement

    Low Concern for Work High

    Manager of a

    Successful Sales

    Group

    Foreman on an

    Assembly Line

    Manager of an

    R&D Lab

    President of a

    Large Corporation

    High

    Concernf

    orPeople

    Low

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    The HR team will design a system that combines several methods of performance measurement that

    includes

    1. Making Comparisons: Using simple ranking on employees complemented by forced-

    distribution method or paired-comparison method to compare behaviours and attitudes

    2.

    Rating Attributes: Using a graphic rating scale or mixed-standard scales, we can decide ona score on each trait of the employee.

    3. Measuring Results: For the R&D staff, the results can be measured in terms of time and

    budget of project, patents and breakthroughs, as well as value-add factor due to research

    output.

    1.3.3 Sources of Performance Information

    The information for performance will be drawn from various sources that includes

    1. Superiors: Project Managers, Directors, Principal Engineers and provide invaluable insight

    on employees under their supervision. It is safe to assume that the supervisors have a good

    understanding of the employee in question and thereby giving reliable information on the

    appraisal.

    2. Subordinates: Research requires good information flow and team dynamics to achieve the

    desired output. Getting information from subordinates can give us insight on the employees

    suitability for R&D department.

    3. Self: Used in combination with the other sources, self-ratings can be a useful tool that

    precedes feedback sessions. It can prove to be a good tool to notice the difference between

    the perception of the employee and that of the others.

    In the short run, appraisal of our Research staff will defer in Singapore and Nantong facility. This is so

    that the appraisal format can suit the culture of these 2 locations. In the long run, we plan to close

    the gap between the differences in appraisal methods of the 2 facilities. However, we must remain

    open to closed appraisal for Chinese employees. Due to the high power distance relationship that

    prevails in China, it is likely to continue to be accepted be an effective tool (Latham & Napier, 1989;

    Entrekin & Chung, 2001; Van Buren & King, 2008).

    1.4 Maintaining positive employee relations

    In a bid to foster good relations with the expanded research staff, we will include more materials on

    our research facilities and breakthroughs in our employee handbooks and monthly newsletter as

    well as company intranet in the future. We will also need to search for HR professionals who are

    experienced in handling R&D employees to join my team to empower my HR department to better

    address the individual problems and aspirations of our R&D talents.

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    1.5 Establishing and administering personnel policies

    We have to work towards strong and effective channels to communicate and administer our HR

    policies in English and Mandarin medium. In Singapore, our HR doctrines are currently documented

    in English, a similar version in Chinese that suits the Nantong culture is needed to establish a

    foothold in China. While consultants can help us in the short run, hiring and training our HR team for

    this purpose will serve the company well in the long run.

    1.6 Managing and using human resource data

    A shared human resource database for Singapore and Nantong facilities will be used for this

    expansion. By including the expanded facility under the Tableau analytics software already in use for

    our Singapore operations, we can reduce the inconvenience and business costs associated with

    using different analytic systems for human resource planning in both locations.

    1.7 Ensure compliance with labour lawsThe IPP sponsorship for employees will give higher priority to Singapore Citizens and PR. Other than

    the tax rebates, this move will increase the high quality Singaporean core in our employees allowing

    us greater flexibility in hiring more foreign talents in our Singapore R&D facility, thereby ensuring

    that our companys manpower is steadily within the quota set by Ministry of Manpower.

    The HR team will also carry out the hiring of employees in our Nantong facility within the framework

    of the Chinese legislation and labour unions.

    1.8 Support organizations strategy

    (Courtesy of KOMTech, 2013)

    The policies laid out by my HR team will ensure sustainable growth and performance of our R&D

    partnership to the best interests of our company stakeholders. These efforts continue to make a

    strong statement of our companys firm commitment towards industrial leadership and research

    excellence.

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    2. Our Immediate Actions

    2.1 Communicating Policies

    The impacts of the research partnership on the career path and aspirations of our employees have

    to be addressed. Initial uncertainty is expected as some may speculate redesigning and restructuring

    of jobs. The HR team will convey the changes in policies clearly and put our employees uncertainty

    to rest through company Intranet, emails and

    2.2 Designing and Analyzing Jobs

    2.2.1 Work Flow Analysis

    This process of work flow design helps us to identify the conditions to produce the output of the

    R&D partnership. This will allow a better understanding of what tasks and conditions are requiredbefore designing jobs and positions.

    My HR team shall first identify and define the main elements in work flow analysis.

    1. Raw Inputs:Data, materials needed

    2. Equipment:Special equipment, software, infrastructure required

    3. Human Resources:Knowledge, skills and experience needed for the job

    4. Activity:Tasks to deliver the output

    5. Output:Innovation obtained and means of measuring output

    Now, develop the Work Flow Analysis for new R & D department in Figure 2.2.1

    Figure 2.2.1

    Raw Inputs

    Info on current

    practices

    Industry data &

    Equipment

    Metrology

    scanners Precision tools

    Lab equipment

    Human Resource

    PhD in Engineering

    Research /work

    experience

    Activity

    Technical planning

    Execution Project

    Management

    Output

    Improved

    practices Breakthroughs

    Patents

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    From Figure 2.2we can then proceed to plan department organization and specifications for the

    type of positions the company requires to produce the desired output

    2.2.2 Job Analysis

    The Job Analyst from our company will go through the process of getting detailed information thatwill include 2 important pieces of writing on

    1. Job Description:Tasks and responsibilities of the job position

    2. Job Specification:Knowledge, skills, abilities and other attributes (KSAO) for the job

    Figure shows an example of a job scope and requirements of a Project Manager that we derived

    from the previous steps.

    Using the same method, the HR team can design the other jobs in the R&D partnership.

    Project Manager of Repair & Restoration

    Working to unparalleled standards of commitment and delivery, you are a visionaryleader with practical management and technical skills. You will contribute crucial

    elements towards our research excellence through supervision of projects responsible

    for developments in repair and restoration. In a highly dynamic environment, you will

    orchestrate strategy and technical planning of your project and lead a dedicated team of

    Principal Engineers to strengthen our innovation and core capabilities.

    Responsibilities

    Oversee projects in repair and restoration

    Application of state-of-the-art CNC and robotized machining/finishing

    technologies for repair and restoration

    Supervise technical planning, execution, delivery of development projects with

    global industry partners

    Requirements

    PhD Degree in Engineering or in a relevant discipline

    Deep understanding of adaptive machining

    Familiar with Design of Experiments in remanufacturing Work experience in remanufacturing roles in oil & gas or R&D in relevant fields

    Courtes of A*STAR-NTU Advanced Remanufacturin and Technolo Centre, Im rovised

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    2.3 Planning for HR

    Being a family-owned business, the CTO and Project Director positions are staffed by the family

    members. Using a transitional matrix we can identify the movement of employees and their sources.

    The HR team will be responsible for the staffing of Project Managers to Development Engineers.

    Using hypothetical data, Figure shows a transitional matrix

    2013

    2009 (1) (2) (3) (4) (5)

    1 Project Manager 0.50 0.50

    2 Principal Engineer 0.25 0.7 0.05

    3 Senior Engineer 0.20 0.50 0.30

    4 Development Engineer 0.40 0.05 0.50

    5 Not in organization 0.25 0.10 0.10 0.95

    Reading across, we can observe that 25% of the Project Managers are still Project Managers in 2013

    and 50% left their jobs by 2013. 5% of the principal engineers are promoted to project managers and

    60% are still principal engineers.

    Reading down, 50% of the Project Managers held on to their jobs, 25% were promoted from

    Principal Engineer and 25% hired from other organization.

    Similarly, we can also observe that 95% of Development Engineers are hired externally.

    In order to meet the manpower needs of our company, we shall continue to hire Development

    Engineers from external sources, Senior Engineers from internal sources and Project Managers from

    both sources.

    2.3.1 Internal Sources

    The HR team will hold up our proud tradition of filling up positions with internal sources so as to

    staff these positions with people who are committed to our brand and company values. We can

    achieve this objective through company intranet, employee publications and lunchtime Career Talks

    for employees.

    2.3.2 External Sources

    External recruiting is vital for the positions of Development Engineers as well as Project Managers.

    As the R&D venture realize, the HR team has to seek out sufficient candidates for these openings.

    The possible channels the HR team will adopt to reach out to potential candidates are

    1. Referrals

    2. Third-party Recruitment Agencies

    3. Undergraduate Career Fairs and Recruitment Talks

    4. Tea Sessions with Research Institutions

    5. Advertisements in mainstream and social media

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    Singapore has ample supply of suitable candidates from the local universities, research institutions

    as well as companies. These measures are likely to help us to reach out to high quality candidates for

    our companys venture.

    2.3.3 Selection

    Our methods of selection for candidates includes 5 stages

    1. Screening applications

    2. Testing and reviewing

    3. Interviewing

    4. Checking references and background

    5. Selection

    We believe through these methods of selection, we are able to choose suitable candidates for our

    expanding R&D department.

    2.4 Compensation and Benefits of R&D

    2.4.1 Bonus for Employees

    A Group Bonus Scheme for Singaporeans and Chinese counterparts will be implemented. This will be

    the same as that received by their counterparts in other departments.

    Performance Bonus for individuals will be made eligible to employees in Singapore and Nantong

    facilities, subjected to good employee appraisal.

    2.4.2 Employee Benefits

    The HR team is experienced in the demands of Singaporean employees. However, we have little

    understanding of the aspirations and expectations of potential Chinese employees. We will need

    advice from consultants who are specialists in Compensation & Benefits to guide us to tailor the

    remuneration package for our employees working in the Nantong facility.

    Salary for Chinese employees based in China will be competitive relative to China. If required for

    overseas assignment to Singapore research facilities, a living allowance estimated from ACCRA Cost

    of Living Index will be computed for work in Singapore.

    Our initial study of the aspirations of Chinese employees suggests they regard public service job

    positions with high prestige. The compensation package is expected to be competitive relative to the

    packages, which includes generous paid leave and pro-family benefits. The HR team may

    also have to factor in fringe benefits such as company-sponsored petrol and holidays for positions in

    Senior Engineers and above hired from China.

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    2.5 Preparing Employees for Successful Overseas Assignment

    The desire for collaboration means a need for our employees to travel to China to set up the venture

    and look after our interests. The HR team will come up with a plan in identifying potential

    expatriates for this venture.

    My HR department is instructed to send Principal Engineers and Project Managers for the facilities in

    China.

    2.5.1 Table of Assessment

    We have devised a list of attributes that allow us to select the best candidates for this overseas

    posting.

    A HR executive will assess the potential candidate and attach a score on each entry of the list.

    On a scale of 1 to 10:

    Strongly disagree / Extremely Bad1

    Strongly agree / Excellent10

    In order to be considered, candidate must

    1. Be assessed for an average of 7.5 and above in each category.

    2. No score entry is below 6.

    3. Entry 6d must be satisfactory, if applicable

    Table 2.5.1shows an example of a potential candidates score from the assessment table

    Score Remarks

    1 Motivation

    1a Degree of interest in wanting to be

    considered

    10

    1b Desire to work abroad 10

    1c Realistic understanding of working and

    living abroad

    8.5

    1d Positive attitude of spouse towards

    overseas posting

    7

    Total 35.5 4 =8.8

    2 Health

    2a Medical problems of candidate and his or

    her family has no adverse effect on

    overseas posting

    9

    2b Candidate has good physical and mental

    health with no predicted change

    10

    Total 19 2 =9.5

    3 Language3a Candidate possesses high potential for 9

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    learning new language

    3b Ability of spouse is able meet language

    requirement

    8

    Total 17 2 =8.5

    4 Resourcefulness and Initiative4a Candidate is independent and able to

    make good decisions and judgments

    10

    4b Candidate has intellectual capacity to

    handle several dimensions

    simultaneously

    10

    4c Candidate is capable of achieving

    objectives and produce results with

    whatever resources available, regardless

    of constraints

    10

    4d Candidate can well operate without a

    clear definition of responsibility andauthority on overseas assignment

    9

    4e Candidate is able to communicate goals

    and philosophy of company to local co-

    workers

    9

    4f Candidate possess sufficient self-

    discipline and confidence to overcome

    complex problems

    10

    Total 58 6 =9.7

    5 Adaptability

    5a Candidate is sensitive, open to theopinions of others and able to

    compromise

    9

    5b Candidate reacts well to new situations

    and show appreciation of the differences

    9

    5c Candidate is culturally aware, sensitive

    and able to relate to local culture

    10

    5d Candidate understands his or her

    culturally derived values

    10

    5e Candidate has a good understanding of

    the Chinese government

    9

    5f Potential of candidate to develop

    contacts with peers in China

    10

    5g Resilience of candidate, reaction to

    setbacks

    10

    Total 67 7 =9.6

    6 Career Planning

    6a Posting is consistent with candidates

    career plan and progression planned by

    HR

    9

    6b Candidates career planning is realistic 9

    6c No history of disputes between candidate 9

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    and peers

    6d Candidate is able to defer military duties 9

    Total 36 4 =9

    7 Financial

    7a Financial and legal considerations ofcandidate that has no adverse effects on

    overseas posting

    8

    7b No undue financial pressure on

    candidates family

    8

    Total 16 2 =8

    Table 2.5.1(Reference from Noe et al, 2013)

    2.5.2 Language and Cultural Training

    After being selected for the overseas posting, the employee will attend a Chinese Language and

    Cultural Workshop arranged by the HR team. This is to ensure that the candidates language skills

    and cultural awareness is up to date, increasing the probability of a successful deployment.

    2.5.3 Compensating Expatriates

    Employees selected for overseas posting will get to enjoy

    1. A salary premium of

    a. $2000 per month for a 2-year assignment

    b. $1000 per month for a 1-year assignment

    c. $600 per month for a 6-month assignment

    2. Allowances worth

    a. $500 per month for housing

    b. $1000 per month for first 6 months of 2-year assignment for relocation

    3. Health insurance coverage for expatriate and spouse

    An example of how these benefits are reflected in the HRs Assignment Allowance Form is

    shown in Figure 2.5.3. The employee is a Project Manager on a 1-year assignment.

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    Name:Alwin NG Effective Date:27 Feb 2014Location of assignment:Nantong, China Title:Project ManagerHome base:Singapore Emp No:506888A

    Reason for change:Deliver Research Project A311

    Old New

    Monthly Base Salary 7000

    Expat Premium 1000

    Housing Allowance 500

    Relocation Allowance 0

    Housing Deduction -500

    Other -200

    Net Monthly Salary 7800

    Prepared by: Date

    Figure 2.5.3 (Reference from Noe et al, 2013)

    This summary sheet will show clearly the variety of allowances and premiums received for each

    employee on overseas assignment.

    We plan to implement this for future expatriates from our Singapore R&D department.

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    3. Changes to our Human Resources

    3.1 Forecasting and Planning

    We are expanding our R&D department in terms of breadth and depth. We need more employees to

    cover the wider scope of research themes to meet the organizations needs.

    Now that we are hiring from Singapore and China, we have to be familiar with the hiring practices as

    well as aspirations of the candidates in both locations. The timing in the supply of fresh graduates

    differs, as well as the perception of prestigious jobs in these two location differs as well.

    As the project demands in Nantong increases, there will also be more overseas deployment for our

    R&D employees in Singapore. We must eagerly seek out employees who are willing to partake on

    the overseas posting and start grooming potential candidates for future assignments.

    We also plan to tap into opportunities to attract talents with IPP in Singapore, and Thousand TalentScheme in China, to better prepare for the increase in demand for senior research staff beyond 2016.

    A systematic approach in the selection of expatriates for our Nantong facility covered in Section 2.5

    will have to be implemented to see to the demands towards 2016.

    3.2 Training and Development

    The training for the R&D staff in both facilities will now include workshop and tea-sessions to

    understand each others culture better. This is to boost the productivity and dynamics of the R&D

    department and prepare the employees for greater cooperation in future.

    3.3 Appraisal of PerformanceAs discussed in Section 1.3, we have to tailor an appraisal system for our employees in Nantong. It

    has to be different as the current one in Singapore so as to better suit the local culture, yet it cannot

    be too different to create disgruntled sentiments between the two locations.

    3.4 Compensation and Benefits

    With the expatriate allowance, Singapore research staff can now enjoy higher net salary by taking on

    overseas assignments as discussed in Section 2.5.3.

    Different remuneration packages will be implemented for Singapore and Nantong facilities

    employees.

    3.5 Communication of HR Policies

    Now available in both English and Chinese, our employee handbooks will convey our HR policies and

    be understood by employees in both locations. On top of that, Mandarin-speaking HR executives will

    be stationed in Nantong to see to the needs of our employees.

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    4. ConclusionThis reports approach covers the main responsibilities of HR which includes

    1. Analysis and Design of Work

    2. Recruitment and Selection

    3. Training & Development

    4. Performance Management

    5. Compensation & Benefits

    6. Employee Relations

    7. Personnel Policies

    8. Information & Data Systems of Employees

    9. Compliance with Laws

    10.Supporting Organizations Strategy

    Our HR goal is to create an environment for happy and motivated employees who take actions to

    the best interest of our stakeholders. We help the organization meet her strategic objectives

    through our commitment towards effective HR policies for our employees.

    The HR Team (Courtesy of KOM Annual Report 2012)

    The contents covered in Section 1 to 3 are non-exhaustive. We recommend further studies and data

    to supplement these suggestions to bring our HR plans further as we move forward to 2016.

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