Media Prima And Astro Malaysia

Media Prima is the biggest listed media group in Malaysia, owning all main private television stations and having approximately 54 percent of Malaysian television viewers, with its closest rival, the pay-television satellite operator, Astro, which offers over 100 channels or stations, controlling a market share of roughly 29 per cent. RTM controls 17 per cent of the market.

Media Prima wholly owns TV channel like TV3, NTV7 and TV9 and holds a 99.5 per cent interest in 8TV. TV3, Media Prima’s flagship television station and the number one free-to-air television station in the country, finished the 2007 season dominating the year’s top 20 programmes (The New Straits Times, 4 January 2008). TV3 recorded a 33 per cent share of viewers in 2007 among over a hundred channels available on satellite and FTA TV (The New Straits Times, 4 January 2008). The group also controls radio stations Fly FM and Hot FM, with a combined listenership of 3.5 million. Besides that, Media Prima has a 43 per cent stake in the equity of The New Straits Times Press, which has four newspapers in its stable. Media Prima is said to reach 22 million Malaysians daily: about 11 million television viewers, seven million newspaper readers and four million radio listeners. Malaysia’s population is a little over 25 million.

Astro All Asia Networks Plc, the group that has the monopoly over Malaysia’s subscription television operation, reaches about 10 million viewers in some two million homes representing a penetration rate of approximately 38 per cent of Malaysia’s TV households in 2010. (Astro Annual Report, 2010) Astro began operating in 1996 and today offers over 100 channels with a wide mix of foreign and local programmes. Its sister company Airtime Management & Programming runs the eight radio stations in its stable, include Hitz, Mix, Light & Easy, Era, My, Xfresh, THR, and Sinar.

2.0 Training and Development

Conduct a Training and Development in an organization is essential where it needs is identified during each employee’s annual career development review. From this process, the acquisition of new skills, competencies, attitudes and knowledge will lead the employees to changed behaviour from reactive to proactive, greater maturity and critical thinking.

In Astro, employee satisfaction survey was carried out to complement existing communication channels. Opinions of 3,054 employees were collated through online survey forms. The survey sought employees’ views on 13 major categories covering various aspects of their jobs. (Appendix B) The total favourable for Training and Career Development where employees think about Astro is doing are 65 percent. This figure is considered moderate where it should take further action to improve. Thus, in 2009, Astro convened two full-scale Town Hall meetings to share latest developments and discussed the Company’s direction, 48 training seminars on topics ranging from leadership courses to safety and health trainings as well as introduce new high definition service which is branded as Astro B.yond. Information that had transpired was recorded in DVDs, and will send to Astro offices across the country in future for training and development purposes.

Realities in economic and advances in technology cause the availability of jobs in TV station have changed rapidly. Therefore, there were several training initiatives designed to increase the number of skilled people in Media Prima. In 2009, the organization invested about RM1.14 million for staff training which involved 3,615 man-days in total in the organization. A summary of the organization training breakdown for 2008 and 2009 is shown in Appendix C. The majority of the training is provided to technical staff which conducted at the organization itself. This is to ensure that the organization maintain the best quality and keep up to date with the latest technology and techniques available in media production.

Although both organization utilize Training and Development, but the ways of conduct is very different. Astro adopt an audiovisual method where used of DVDs for training and development will helps the organization to reduce cost, manpower and not time consuming. On the other side, Media Prima utilize apprenticeship training where the employees enter the skilled trades given through instruction and experience in the practical and theoretical aspects of work. When employees face problems in workplace, they can solve it based on their experience gained during the training.

3.0 Performance Management System

A new performance evaluation system in Astro consists of a 360° feedback mechanism to get a balanced assessment of the employee own peers. The need for this balance is also reflected in a revised Performance Review Form. One significant aspect of the new performance evaluation is the Relative Ranking & Rating which rewards high performing employees in a transparent manner. Employees who fall under the lowest of the three-tier scale will be coached and guided via a Low Performance Management Process (CAP) system. (Appendix D)

At Astro, employees are given clear expectations of the accomplishments desired of them as well as the ways to perform and achieve these expectations. This is done through the Performance Management System (PMS) under which periodic performance evaluation exercises are conducted to review employee’s performance. With this system, employees are aware of their strengths and also given ample room to work on improving their performances. The reviews run in 2 cycles in the span of the financial year; a year end review in January followed by a midyear review in July.

Media Prima has introduced a 360 degree feedback system which is also referred to as the multirater or multisource feedback. It provides employees with performance feedback from supervisors, co-workers, peers, customers and reporting staff. It also includes self-assessment. We implemented this system as we take human capital management and development very seriously. 360 degree assessment is a process whereby the company takes stock of its capability once every two to three years to meet business challenges. The process begins with the company putting in place a competency framework which is aligned to the business direction of the company. The competency framework is used as a guide to recruit, develop, assess and compensate the employees based on performance and capabilities. In the case of Media Prima, an external consultant was hired to conduct the data collection process as well as the feedback and the follow up process.

4.0 Compensation and Rewards

The Group operates a performance based bonus scheme for all employees, including the executive directors. The criteria for the scheme is dependent on the achievement of key performance indicators (KPI) set for the Group’s business activities as measured against targets, together with an assessment of each individual’s performance during the period. Bonuses payable to the executive directors are reviewed by the Remuneration Committee and approved by the Board.

Employees’ compensation is determined by their performance which is measured across various Key Performance Indicators (KPIs). Media Prima uses a point-based system which ranges from 2 to 5 in determining the weight of the bonus (5 being the highest performing). This process is used to assess all employees (100%). The percentage of employees achieving each performing level and the entitlement of each level is listed in Appendix E.

APPENDIX A – Table 1: Similarity and Differences between Media Prima and ASTRO

HUMAN RESOURCE STRATEGY

Similar

Different

Reason

Training and Development

Used Apprenticeship Training.

Majority of training is provided to technical staff, to ensure that organization maintain the best quality and keep up to date with the latest technology and techniques available in media production.

All security personnel are auxiliary policemen, and are required to undergo training by The Royal Malaysian Police Force.

Used Audiovisual Method.

Information that had transpired was recorded in DVDs, and will send to Astro offices across the country in future for training and development purposes.

√

Astro used an audiovisual method where it helps the organization to reduce cost and manpower.

Media Prima utilize apprenticeship training where the employees will enter the skilled trades given through instruction and experience in the practical and theoretical aspects of work.

Performance Management

√

HUMAN RESOURCE STRATEGY

Similar

Different

Reason

Reward and Compensation

Post-employment benefits

√

Both organizations tend to provide the same rewards and benefits so that the employees will contribute their best effort and skills to improve performance and gaining profits for the organization.

Termination benefits

Recognises termination benefits when it is demonstrably committed to either terminate the employment of current employees according to a detailed formal plan without the possibility of withdrawal or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits which are due more than 12 months after the balance sheet date are discounted to present value.

Paid whenever employee’s employment is terminated before normal retirement date.

Recognises termination benefits when it is demonstrably committed to either terminate the employment of current employees according to a detailed formal plan without possibility of withdrawal or to provide termination benefits as a result of an invitation made to encourage voluntary redundancy.

√

Share-based Compensation

Operates an equity-settled, share-based compensation plan for its employees. The total amount to be expensed over the vesting period is determined by reference to the fair value of the share options granted, excluding the impact of any non-market vesting conditions (for example, profitability and sales growth targets).

Nonmarket vesting conditions are included in the assumptions about the number of options that are expected to vest.

Operates an equity-settled, share-based compensation plan. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted, excluding the impact of any nonmarket vesting conditions.

At each balance sheet date, the entity revises its estimates of the number of options that are expected to become exercisable. The proceeds received net of any directly attributable transaction costs are credited to share capital and share premium when the options are exercised.

√

APPENDIX B – Table 2: ASTRO’s Employees Satisfaction Survey

– What our employees think Astro is doing well?

Categories

Total Favourable (%)

Corporate Social Responsibility

84

Strategy, Direction & Objectives

81

Employee Engagement

77

Customer Focus

72

Teamwork

71

Supervision

68

Training & Career Development

65

Leadership

59

Performance Management

59

Organisation Culture & Values

57

Rewards & Recognition

56

Sources adopted from:

ASTRO All Asia Network Plc, 2009 Annual Report, “Inspiring Sustainability”.

Available at:

http://www.astroplc.com/09/cr/InspiringSustainability09.pdf

APPENDIX C – Chat 1: Media Prima’s Training Programme Breakdown (%)

Sources adopted from:

Media Prima, 2009 Sustainability Report, “Giving Back”.

Available at:

http://www.mediaprima.com.my/aboutus/csr.pdf

APPENDIX D –

Process

Description

Key Performance Indicator (KPI) Setting

A list of expected accomplishments and results jointly set by managers and employees at the beginning of the financial year.

1:1 Performance Review

Managers evaluate the appraised employee of their performance during the past financial year with notes on strengths and areas of improvement to provide constructive feedback.

360° Feedback

Individuals with regular work involvement with the appraised employee provide feedback on their interactions with the employee to provide a holistic view of the employee’s performance.

Ranking & Rating (R&R)

Employees are evaluated against colleagues performing similar job functions to differentiate employees into levels of performance.

Corrective Action Plan (CAP)

Employees rated below expectation are given the opportunity to improve their performance or to exit from the organization.

APPENDIX E –

Point

Percentage of Employees (%)

Bonus Quantum

2

1

3

27

1.72 of the base salary

4

59

2.23 of the base salary

5

13

3.47 of the base salary