umseprints.ums.edu.my/6004/1/mt0000000075.pdf · selidik diedarkan tetapi hanya 108 soal selidik...

UNIVERsm MALAYSIA SABAH

BORANG PENGESAHAN STATUS TESIS

lUDUL : INFLUENCE OF WORK-LIFE BALANCE AND TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE: A STUDY IN SABAH FOREST INDUSTRIES

DAZAH : SARJANA PENGURUSAN SUMBER MANUSIA

SESI PENGAlIAN: 2009-2012

Saya, HARJIT RANlIT KUMAR, mengaku membenarkan tesis sarjana ini disimpan di Perpustakaan Universiti Malaysia Sabah dengan syarat-syarat kegunaan berikut:

1. Tesis adalah hak milik Universiti Malaysia Sabah. 2. Perpustakaan Universiti Malaysia Sabah dibenarkan membuat salinan tesis

ini untuk tujuan pengajian sahaja. 3. Perpustakaan Universiti Malaysia Sabah dibenarkan membuat salinan tesis

ini sebagai bahan pertukaran diantara Institusi Pengajian Tinggi. 4. TIDAK TERHAD.

Penulis: HARJIT RANJIT KUMAR Alamat: 629-12, Lot 3, LR 10,

Taman Indah Permai, Jalan Sepanggar, 88450 Kota Kinabalu, Sabah.

Tarikh: 23 Ogos 2012

Disahkan Oleh;

~~~. DATU RAZAU DATU HJ. ERANZA

UMS UNIVERSITI MALAYSIA SABAH

INFLUENCE OF WORK-LIFE BALANCE AND TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE: A STUDY IN SABAH FOREST

INDUSTRIES

HARJIT RANJIT KUMAR

A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT FOR THE DEGREE OF MASTERS OF

HUMAN CAPITAL MANAGEMENT (MHCM)

SCHOOL OF BUSINESS AND ECONOMICS UNIVERSITI MALAYSIA SABAH

2012

o }UMS ~.......,.~,) S, R , \\ UNIVERSITI MALAYSIA SABAH

DECLARATION

I hereby declared that the materials in this dissertation originally expect for quotes,

excerpt, summaries, and references, which have been appropriately acknowledged.

28 August 2012

ii

HARJIT RANJIT KUMAR

PE20098823C


ACKNOWLEDGEMENT

I am sincerely and grateful to my advisor Datu Razali Datu Eranza which show his

support towards me in my dissertation writing. I am sure it was impossible to

complete this project without her help. Besides that I would to thanks to Prof. Dr.

Roselina Ahmad Saufi, Oscar Dousin and Wijaya Kamal Bin Ramlan for providing

vital encouragement and support for teaching me in this project. Your priceless

technical advices have done the research better than before.

My sincere thanks to my friends Chiewlan, Jane, Sabki, Adeline, Alvin, Jessica,

Rrdaus, Erica, and every individual involved directly and indirect during the

completion of this research. Your help makes this research completed. I also want

to thank to Roslan Hj. A. Nunsi Human Resource Manager at Sabah Forest

Industries that given me clearance to conduct studies in the organization.

At last and foremost important I like to thank to my family especially my

father and sister who supported me from the start at the end of this dissertation.

Then finally, I also feel humble to the omnipresent God which answering my

prayers and giving me strength to finish this project, thank you so much Dear Lord.

Harjit Ranjit Kumar

28 August 2012

iii


NAME

MATRIC NO

TITLE

DEGREE

VIVA DATE

CERTIFICATION

HARJIT RAN1IT KUMAR

PE20098823C

INFLUENCE OF WORK-LIFE BALANCE AND TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE: A STUDY IN SABAH FOREST INDUSTRIES

MASTER OF HUMAN CAPITAL MANAGEMENT

09 AUGUST 2012

DECLARED BY

1. SUPERVISOR Datu Razali Datu Eranza Signature

Iv


ABSTRACT

Influence of Work-Life Balance and Training and Development on

Employee Performance: A Study in Sabah Forest Industries

The purpose of the study is to examine the relationship of work-life balance

between employee's performances. This study also aimed to study training and

development as a second independent variable, whether it has the impact on

employee performance in the organization. In this study, work-life balance is act as

the dependent variable whereas employee's performance acts as the independent

variable. The relationship between the dependent variable and independent

variables above are evaluated among Sabah Forest Industries workers. Hence,

questionnaire is required to prove this relationship. The study is focusing on to

influence of work-life among workers in Sabah Forest Industries. Questionnaires

are taken from Frone and Yardley (1996), Truitt (2011) and Lynch et al., (1999)

and were used to investigate the influence work-life balance on employee's

performance. A total of 400 questionnaires were distributed but only 108

questionnaires were answered. The data analysis was done by using IBM SPSS

(Statistical Package for Social Science). The results from studies indicate that work

life balance has no relationship to employee performance in Sabah Forest

Industries workers. The results of this study also shows that training and

development have high significant to the relationship on employee performance.

Nevertheless, the result has indicated that training and development are essential

in human capital development since it embraces of the success of the organization.

This will help the Sabah Forest Industries to enhance their training and

development of the employee to make sure that employees are more productive

from time to time. The study provides a baseline data for employee's performance

so that it can be improved and give more benefit to the organization.

v


ABSTRAK

Tujuan kajian ini adalah untuk mengkaji hubungan antara imbangan kerja dan

hidup dan prestasi pekerja di mana latihan dan pembangunan berfungsi sebagai

pembolehubah yang kedua. Dalam kajian ini, imbangan kerja dan hidup berfungsi

sebagai pembolehubah yang dimalarkan dan prestasi pekerja berfungsi sebagai

pembolehubah yang tidak boleh dimalarkan. Pembolehubah ini dikaji pada pekerja

Sabah Forest Industries. Oleh itu soal selidik diper/ukan untuk mengkaji hubungan

ini. Kajian ini memberi focus kepada pengaruh kehidupan pekerja ke atas pekerja di

Sabah Forest Industries. Soal selidik ini dirujuk daripada Frone dan Yardley (1996),

Truitt (2011) dan Lynch et al., (1999). Rujukan ini bertujuan untuk mengkaji

pengaruh imbangan kehidupan pekerja ke atas prestasi pekerja. Sebanyak 400 soal

selidik diedarkan tetapi hanya 108 soal selidik dijawap. Analisa data dibuat dengan

menggunakan IBM SPSS (Statistical Package for Social Science). Hasil kajian

mendapati bahawa imbangan kehidupan pekerja tidak mempunyai hubungan

dengan prestasi pekerja di Sabah Forest Industries. Kajian juga menunjukkan

bahawa latihan dan pembangunan mempunyai impak yang amat besar ke atas .~ ~ cc

prestasi pekerja. Selain itu, Kajian juga menunjukkan bahawa latihan dan ~ z

pembangunan adalah per/u dalam pembangunan modal insan kerana ia ::;)

menentukan kejayaan sesuatu organisasi. Ini akan dapat membantu Sabah Forest

Industries untuk meningkatkan latihan dan pembangunan pekerja untuk

memastikan pekerja semakin produktif dari semasa ke semasa. Kajian ini juga

menyediakan petunjuk awal untuk prestasi pekerja supaya ia dapat dipertingkatkan

serta memberi lebih banyak kebaikan kepada organisasi.

vi


TABLE OF CONTENTS

Page

TITLE PAGE

DECLARATION ii

ACKNOWLEDGEMENT iii

SUPERVISOR'S DECLARATION iv

ABSTRACT v

ABSTRAK vi

TABLE OF CONTENTS vii

UST OF DIAGRAMS x

UST OF TABLES xi

UST OF ABBREVATION xiii

CHAPTER 1 INTRODUCTION

1.1 Overview 1

1.2 Problem Statement 4

1.3 Research Question 6

1.4 Objectives of the Study 6

1.S Scope of study 7

1.6 Significance of Study 7

1.7 Definition of Term Used 8

1.7.1 Work-Life Balance

1.7.2 Training and Development

1.7.3 Employee Performance

1.8 Information about Sabah Forest Industries 10

1.9 Organization of thesis 11

CHAPTER 2 LITERATURE REVIEW

2.1 Introduction 12

2.2 Work-Life Balance 12

2.3 Training and Development 18

Vll UMS UNIVERSITI MALAYSIA SABAH

2.4 Employee Performance 21

2.5 The Relationship between Work-Life Balance and 24

Employee performance

2.6 The Relationship between Training and Development 29

and Employee Performance

2.7 Summary 31

CHAPTER 3 METHODOLOGY

3.1 Introduction 33

3.2 Research Framework 33

3.3 Definitions of Variables 35

3.3.1 Independent Variable

3.3.2 Dependable Variable

3.4 Research Hypotheses 36

3.5 Research Design 37

3.6 Unit of Analysis 38

3.7 Sampling Design 38

3.7.1 Location of Study and Population

3.7.2 Sampling Design and Sample Size

3.8 Instrument Design 39

3.8.1 Organization of Questionnaire

3.9 Data Collection Method 40

3.10 Reliability Test 41

3.11 Data Analysis 41

3.12 Summary 42

CHAPTER 4 RESULTS OF THE STUDY

4.1 Overview 43

4.2 Overview of Data Collected 43

4.3 Profile of Respondent 44

4.4 Reliability of Measure 49

4.5 Descriptive Analysis of Measure 50

4.6 Hypothesis Testing 51

Vlll UMS UNIVERSITI MALAYSIA SABAH

4.6.1 Multiple Linear Regressions

4.7 Summary of the Rndings 53

CHAPTERS DICUSSION AND CONCLUSION

5.1 Introduction 55

5.2 Discussions of overall results 55

5.2.1 Results of Correlation Analysis

5.2.2 Results of Hypothesis Testing

5.3 Implication of the study 60

5.4 Limitation of the study 62

5.5 Recommendation of the research 63

5.6 Conclusions of the study 66

REFERENCES 68

APPENDIX A - Questionnaire 85

APPENDIX B - SPSS Output 91

IX UMS UNIVERSITI MALAYSIA SABAH

LIST OF DIAGRAMS

Page

Diagram 3.1 Research Framework of the Study 34

Diagram 5.1 The Adjusted R2 value for the final model of "Influence 56

of Work-Life Balance and Training and Development on

Employee Performance"

x


UST OF TABLES

Page

Table 3.1 The 5-point-Likert-Scale 40

Table 3.2 The statistical method for hypothesis testing 41

Table 4.1 The Gender of the Respondents 44

Table 4.2 The level of Management of the Respondents 44

Table 4.3 Department of the Respondents 45

Table 4.4 Job Status of the Respondents 45

Table 4.5 Years of working of the Respondents 46

Table 4.6 Age of the Respondents 46

Table 4.7 Education levels of the Respondents 47

Table 4.8 Liability or Number of Dependence of the Respondents 47

Table 4.9 Salary Received of the Respondents 48

Table 4.10 Marital status of the Respondents 48

Table 4.11 The Race of the Respondents 49

Table 4.12 The reliability of measure in each variable 49

Table 4.13 Descriptive Analysis of Measure of the Variables 50

xi


Table 4.14 Summary of Hypotheses 1 until 3 52

Table 4.15 Summary of Hypotheses 4 53

Table 5.1 Summary of Research Results for "Influence of Work-Life 57

Balance and Training and Development on Employee

Performance"

xii


LIST OF ABBREVATION

BILT Ballarpur Industries Ltd

CIPO Chartered Institute of Personnel Development

GCGL Graphic Communications Group Limited

HR Human Resource

HRM Human Resource Management

ITC Integrated Timber Complex

MOHR Ministry of Human Resources

NAORA National Database and Registration Authority

PTCL Pakistan Telecommunication Company Limited

SFI Sabah Forest Industries

SPSS Statistical Package for the Social Sciences

VIF Variation Inflation Factors

WLC Work-Life Conflict

xiii


CHAPTER 1

INTRODUCTION

1.1 Overview

In today's society, the need to attract, motivate, develop and retain the best

employees is crucial to any organizations. So to ensure those employees to retain

and stay in the same organization, the organization needed to clarify its goals and

objectives, and ensure that their employees satisfied with their jobs. Recently,

many organizations have to acquire other companies to fill the talent gap to make

retention in Human Resource (HR) and business imperative (Parker and Wright,

2001). Work-life balance has become one of the important issues of the current

employment prospect in working environment today (People Management, 2002;

5). According to Guest (2001) work-life balance has been a concerned with the

research, especially in terms of quality of working life and its relation to quality of

life of an employee. Then this issue has been taken seriously by the employer who

by adopting temporally flexible working practices (Reeves, 2001). Subsequently,

this paper focusing on understanding in what way and how work-life balance can

influences employee performance through proper training and development of an

employee whom their working performance are below from standard of work-life

balance.

The work-life balance principle has become essential between employer and

employee from the workplace. The organization should truly understand what

employee's need and determine how to meet these needs and at the same time

managing talent of those employees to ensure the competitive advantage of

organizations are sustained in the market (SOCiety for Human Resource

Management, 2006).


There are many researches on employee's performance where the research

is focusing on conflict in personal and work life of employees. This called work-life

conflict where the worker is unable to balance their responsibilities between work

and life, whereas any unsuitability and imbalance of work and life activities

(Kinnunen et al., 2006; Fritz and Sonnentag, 2006; Anwar and Shahzad, 2011).

Furthermore, organization's survival in the industry only be can be predicted based

on the performance of their employee human capital value. An effective human

resource practice is powerful, which fits the resource-based view concept of human

capital in the organization (Purcell et al., 2003; Paauwe, 2004). The Human

Resource (HR) practices is crucial for the survival of the organization since it will be

able to add value in human capital based on flexibility and development (Baptiste,

2008).

In understanding on how training and development work into better

employee performance, we see a study by Konrad (2006) in the United States

manufacturing firms shows that when an organization maximize high-performance

work systems ,employees more productive rather their competitors. This is shown

that if the employee has the power to take decisions related to their performance

and ability to utilizing information, skills and knowledge which they have, they will

become more productive and will be rewarded for their efforts. Based on a study

that conducted by Stavrou et al., (2004) training and development practices can be

the sources of competitive advantage, where it allowed employees to allocate their

skills and knowledge to perform well in the organization. In comparison, training

and development can be expensive for an organization to conduct but at the same

time it is important for them polish employees' ability to achieve best performance

in the long-run.

Human capital is defined as ''accumulated stock of skills, experiences, and

knowledge that resides in an organization s workforce and which has the capacity

to engender productive labour" (Nalbantian et al., 2004). Any business that has

goals not only to survive but also getting higher profit in this present day must

invest in on-going training and development to improve effectiveness in production

as well as to acquire the greatest profit in investment of human capital (Knoke and

2


Kalleberg, 1994). Knoke and Kalleberg (1994) also stated that these measures are

important to ensure these employees who have been trained by the organization

stay with them and preventing competitors from persuading them away. According

to the Truitt (2011), training effectiveness seems unclear, but it is an essential part

of the employee - employer relationship. Even this statement is proved by Knoke

and Kalleberg (1994) which see organization training practices are based on many

samples of diverse employing organizations is almost absent.

Based on human capital theory of Becker (1985; 1991), Shaffer et a/.,

(2001) has concluded that the employee has the full potential to develop

themselves. So in this case the resources are time (behaviours) and energy

(physical and psychological) but in this theory, the individual must also prioritize of

non-work activities. When these resources are clashed between work and non

work, it might bring conflict to the family and consequently give negative impact on

worker's career. In human capital theory, it is difficult to maintain a balance work

and personal life. Once worker unable cope with work-life balance, they will

become stress and this causes them to rely on others for resources, as like in the

case of work and family issues (Greenhaus and Beutell, 1985). According to

research by Ministry of Human Resources (MOHR) in 2008, Malaysia's human

capital becomes worse. MOHR stated that more than 350,000 Malaysian workers

whom have tertiary education are working in other country. This shows that in

Malaysia itself have serious issue in recruiting skilful people. Consequently,

organization will have difficulties in finding qualified worker for their organization

since many Malaysian talented workers are working abroad (National Economic

Advisory Council).

Employee performance is important for business success and increasing

employee knowledge, and skills. The basis of employee performance is job security,

workload, absenteeism, retention and on-the-job training and off-the-job training

(Dibben and James, 2007; Dyer and Reeves, 1995).

3


1.2 Problem Statement

In this study is made to investigate the issue regarding of performance among the

employee which has associated in human capital management issues in workplace.

In the world of high competitive edge in searching for the best talent, an

organization has to realize that in getting the right people who are capable to work

in their organization, they must make sure that these people are productive. If not,

these people will be lacked in performance to work in the organization.

Work-life balance also has major consequences on employee's attitude

towards their organization but also have some influence on worker's personal life

(Baptise, 2008). According to Tehrani et al., (2007) these concepts are crucial in

ensuring the needs of both employees and services and able to balance between

work and non-work for all employees. In reality, work-life balance has become

popular in contemporary debates since it involves the excessive demand of works,

where it focusing on major issues of working environment that needed to be

addressed (Guest, 2001). Then, based on study by Scholarios and Marks (2004),

they suggested that work-life balance might be important for management to have

a highly trained knowledge employees, such as technical profeSSionals, which

commitments on these types of workers are challenging for the employers

(Davenport, 1999). Based on study by Guest (2001) there are three principal issues

in work-life balance that can be identified. First, the concern on employee

development at work might see as the main problem of imbalance of between work

and life. Second, those individuals who have a personal life might have problem in

work-life balance. Lastly, those workers whom have personal life might bring

challenges in work-life balance as they might bring up a contemporary policy issue

in the workplace. In many ways, work-life balance has influence on all types of

working groups (Baptiste, 2008).

In the era of globalization and highly mobile environment, the issue of

giving rewards through money is not enough to motivate people. The organization

must look in other dimensions so that these people willing to perform work and

joining with organizations. Even though many studies has been done to answer to

4


the questions related importance of job training, but according to Young (2008)

"training and development budget is often the first to go and the last to come

back'~ So the effect of training and development are long term process and if it has

been used wisely it can bring success to the business.

In this challenging global marketplace, which is categorized as a

technological advancement, the organization demands a more flexible and

competent employee who able to make organization more competitive than others

(Nikandrou et aI., 2008). Thus, training and development are important in ensuring

employees have the knowledge, skills and attitudes that are essential to achieve

organizational objectives and bring a competitive advantage to the organizations

(Peteraf, 1993).

To ensure success in the organization and the country's economy, training

and development of the employee become more recognizable in recent years

(Holden, 1997). Even in Europe, training and development of human capital are

one of the most challenging tasks in the organization (Stavrou et al., 2004). On the

contrary, Duffey (1988) argues that human can be the best source of competitive

advantage of nation, which makes an effort to serve the public and need to be

strategically effective from other nations. In addition, the strategic value of HR can

affect the suitable resources that managed to ensure performance of employees

can be improved (Pfeffer, 1994). In fact, the question still rose to the extent of

which organization actually able to exploit the key importance of their HR of the

organization. Consequently, report of the National Economic AdviSOry Council said

that the availability of expatriates in Malaysia has decreased 9.00% every year

since 2000. This means that the availability of the qualified workers is worsening in

Malaysia. The training and reskilling of a worker also become challenging since it

was estimated that as many 60.00% Malaysian have education only up to SPM level

or equivalent. This is relatively low since human capital theory said that the training

and development as well educations are a key factor to higher growth.

5


1.3 Research Questions

The researcher would like to investigate the effect of work-life balance between

training and development on employee performance. Despite a reward towards

money and benefits, employee performance is still low. This research is aligning

with the research objectives as follows:

1. What is the relationship between work-life balance and employee

performance?

2. What is the relationship between work-life conflict and employee

performance?

3. What is the relationship between non work conflict and employee

performance?

4. What is the relationship between training and development and employee

performance?

1.4 Objectives of the Study

This study is aimed to examine the effect of work-life balance between training and

development on employee performance. This research is aimed to study work-life

balance, training and development, which have the impact on employee

performance in the organization. This study also trying to prove that the

unsystematic and improper organization structure can lead lower employee

performance, which leads to turnover of the employee. The main objectives of the

specific research objective are listed below;

1. To study the relationship between employee work-life balances has

influence in employee performance.

6


2. To study the relationship between employee work-life conflicts has


3. To study the relationship between employee non-work conflicts has


4. To study the relationship between training and development towards

employee performance.

1.5 Scope of Study

The scope of study in this research is from employee of Sabah Forest Industries

(SFI) which headquarters in Sipitang Sabah. SFI is the major producer of paper and

pulp in South-East Asia. This study only includes work-life balance, training and

development on employee performance.

1.6 Significance of Study

This study is aim to establish and investigate whether there a relationship between

work-life balances through training and development on employee performance.

This study will help the organization in identifying and improving ways or

technique to increase employee performance. As a result, human-resource

professional and managers can make better incentives, best work-life balance and

promote training and development among the employee to ensure higher employee

performance can be established. Therefore, this study will help to answer some

questions regarding work-life issues. Thus, the results of the study will help the

organization to gain competitive advantage in managing worker issue in the

workplace.

This study will provide a better view of an employee's behaviour on

employee performance, in this scale of the industry may develop the framework to

promote in recruiting them in the vast scale.

7


Therefore this study will provide the prime answers from the targets point

of view. The results will definitely help the industry players' better point of view and

help them to manage the workers' issues and especially the local issue effectively.

The conceptual framework is proposed in this study has not been applied to date

but hopes to add to the body and create new framework of research on employee

commitment.

1.7 Definition of Variables

1. 7.1 Work-life balance

According to Guest (2001) work-life balance is presents definitional and

understanding operational problems in terms of both policy and practice. This

"work" not only based on contractual hours of employment but also including

unpaid activity such as extended and unpredictable journey times and which is no

seamless divide between the areas of work and at home. After that ',/ife"has been

construed to imply ''family life" but according to the author are more in-depth

perspective, to include also free and leisure time and irrespective of family

commitments at home. Finally ''balance''is meant ''need to recognize that balance

can have both an objective and subjective meaning and measurement, that it will

val}' according to circumstances and that it will also val}' across individuals"(Guest,

2001).

According to (Martocchio, 2008) work-life balance is referring to paid time

off policies that compensate when employees are not working during their primary

work duties, providing the employees opportunities to integrate work and non-work

demands. Bratton and Gold (2003) define work-life balance as the need to ''balance

work and leisure/family activities'~ This leisure might also include such as a desire

to travel, involving in community activities and take care for elderly. The definition

used by the researcher is for this study is by Martocchio (2008).

8


1. 7.2 Training and development

According to Wexley and Latham (1991: 3) training and development defines as 'a planned effort by an organization to facilitate the learning of job-related behavior

on the part of its employees'~ The purpose of training and development are to

change the skills, knowledge, or behaviours of employees. Based on research by

Chiaburu and Teklab (2005) training means that ''is the planned intervention that is

designed to enhance the determinants of individual job performance'~ According to

Stone (2005: 311-312) training and development are intended to increase

capability of employees to carry out existing jobs and likely for future jobs and

where necessary to modify their behaviour accordingly.

Training, according to Armstrong (2006: 575) ''is the use of systematic and

planned instruction activities to promote learning'~ Development based on research

by Noe et al., (2004), means learning that is not necessarily related to the

employee's current job but and increases their skills to move into jobs that likely

may that not exist yet. The definition used by the researcher is for training and

development in this study is by Stone (2005).

1.7.3 Employee performance

According to Babin and Boles (1996) employee performance defined as the

capability of employing to produce as compared to other employees of similar level

on numerous job-related behaviours and results. Employee performance also

means that the worker will achieve higher levels of individual and organizational

performance which involves quality, productive, innovation rate and cycle time of

performance from the employee itself (Bharadwaj, 200S).

Employee performance means that employee productivity and higher output

as a result of development of the employee who brings organization effectiveness

(Hameed and Waheed, 2011). So in this study the researcher will use the definition

by (Babin and Boles, 1996)

9


1.8 Information about Sabah Forest Industries

Sabah Forest Industries (SFI) were established in June 1982, as whole by the state

government of Sabah as the part of the industrialization program in the state to

produce pulp and paper. Then the state government privatized with the Lion Group

of Malaysia in 1990's. Recently was acquired by Sallarpur Industries Ltd (SILT)

from Lion Group in last mid-March 2007 which makes largest pulp and paper

manufacturer that acquire by the Indian company. The acquirer of share involved

US $ 261 million (RM 944.5 million) which is 97.80% are owned by SLIT and 2.20%

are owned by the state government of Sabah.

As such SLIT are the member of Avantha Group which has USD 5.00 billion

transnational many of companies like involved in engineering, power, IT, food,

pulp, paper and timber amongst others. The headquarters of Avantha's is located

Delhi and employed more than 20,000 workers in 10 countries. SFI has three

divisions which are Pulp and Paper, Plantations and Integrated Timber Complex

(ITe) consisting of a sawmill and plymill. The objectives, vision, and mission of SFI

are followed based on SLIT principles as follows;

i. BIl rs Vision - Our aspiration is to become a leading creator of Shareholder

Value in the Paper Industry. To achieve this, we will use the ENERGY of our

people, develop and implement leading edge technologies and draw on both

to deliver effective world-class solutions to our customer.

ii. BIl T'S mission - To conSistently outperform expectations and deliver

superior value to both our Customers and Stakeholders. To achieve this, we

will energize our people, with a positive culture that rewards innovation,

breeds initiatives and encourages intelligent risk taking.

iii. BIl T' objectives

1. To diversify the state's economic and technological base.

2. To make the nation self reliant on its basic needs have paper.

10


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