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30 KPJ Healthcare Berhad

(Company No. 247079 M)

Annual Report 2010

Statement to Shareholders

KPJ hospitals also endeavour to adhere to internationally-accepted best practices through accreditation by the Malaysian Society for Quality in Health (MSQH). During the year under review, four KPJ hospitals, namely KPJ Perdana Specialist Hospital, KPJ Kajang Specialist Hospital, KPJ Penang Specialist Hospital and Kedah Medical Centre, were accredited by MSQH for the first time, bringing the total number of MSQH-accredited KPJ hospitals to 10. Six other hospitals, specifcally KPJ Johor Specialist Hospital, KPJ Ipoh Specialist Hospital, KPJ Ampang Puteri Specialist Hospital, KPJ Damansara Specialist Hospital, KPJ Selangor Specialist Hospital and KPJ Seremban Specialist Hospital, have successfully renewed their accreditation status for the second, third or fourth cycles.

Two hospitals, KPJ Ampang Puteri Specialist Hospital and KPJ Seremban Specialist Hospital are working towards an accreditation by Joint Commission International (JCI) some time in year 2011.

Another globally-accepted quality framework already being adopted by some KPJ hospitals is the Integrated Management System ( IMS) which integrates a Qual i ty Management System, Environment, and Occupational Safety and Health, complementing other qualifcations and standards. More KPJ hospitals are embarking on this.

We are pleased to note that our commitment to quality have been well recognised, with our hospitals receiving a multitude of awards for occupational and safety, management, human resource development and productivity, locally and abroad.

We wish to assure our valued customers that patient safety is of utmost importance at KPJ hospitals and we will make every effort to sustain quality medical care at all times.

FOR OUR EMPLOYEES

Shared Commitment to Positive Employee Values The Group requires all staff to commit to honesty and transparency in their work ethics. This is in line with one of KPJ’s Core Values, integrity. A clear framework to ensure the practice of this core value for all employees is the Borang Peradaban, where all employees are to report any misappropriation. The senior management is also required to declare their assets in a move to further improve transparency.

Continuous Training and Development

As a learning organisation, KPJ encourages continuous development among its employees and accords the opportunity to deserving candidates to improve their knowledge and competencies through formal education or on-the-job training. A target has also been set for each staff member to receive a minimum of 30 hours of training every year. The Group’s strong performance and outstanding accomplishments are largely due to the contribution of its people.

In 2010, KPJ spent about RM7.4 million on human capital development, similar to the amount spent in 2009, to sponsor qualifed staff members for training, education, seminars, workshops and conferences. Such education and training programmes help sharpen the skills and improve the quality of our employees, which in turn boosts productivity, enhances employee retention and develops greater career prospects for our staff.

In the areas of clinical information, Medical Consultants shared their knowledge through speaking engagements at conferences and forums, and participate actively in the annual KPJ Healthcare Conference and Workshop. Members of KPJ management team, both from the corporate offce and hospitals, delivered papers at local and international platforms ~ based on their own personal merit as experienced and knowledgeable professionals.

Career Advancement

In tandem with our rapid expansion, we have seen our workforce size growing to 8,369 employees at end-2010 and seek to hire more than 750 staff in 2011, including medical offcers, pharmacists, nursing, allied health and support service staff.

Our recruitment plan also weaves together opportunities for career advancement, evidenced by the growth of our current team of managers of diverse backgrounds and who have brought with them experience from various felds.

KPJ is an Equal Opportunity Employer where career development opportunities are fair, based on individual potential and commitment. This has been a strong driver of performance, Group-wide.

Promotions are based on their skills, knowledge and competencies and staff are also provided the necessary training to help them assume greater responsibilities as they move up the ladder. Rewards are also performance-based, with the Staff Performance Appraisal Review (SPAR) being one of the key measures of productivity and achievement.

To further boost our pool of skilled, value adding personnel, the Group’s Talent Management programme has been specifcally designed to identify, nurture and retain skilled, capable and high-potent ial individuals wi thin the organisat ion. Whi le encouraging employee engagement, it also complements KPJ’s

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