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PETRONAS Gas Berhad ( PGB ) was incorporated as a private limited company on 23th May

1983 under the Companies Art, 1965 of Malaysia and converted to a public limited liability

company on 28rd March 1995. PGB is a gas processing, transmission and utilities company.

PETRONAS, the national oil company holds 60.63% equity in PGB which was listed on the

Main Board of the Bursa Malaysia Securities Berhad on 4th September 1995. In addition to gas

processing and transmission, the Company¶s activities includes supply of industrial utilities such

as steam, electricity, oxygen, nitrogen, compressed air, demineralised water and waste water

treatment to the petrochemical complexes in the Kertih and Gebeng industrial zones.

The company operates six Gas Processing Plants ( GPP ) which process natural gas from

the offshore fields of Terengganu. Four of these plants are located in Kertih and the other two in

Paka, Terengganu. The plants have a proven sales gas production capacity of 2,060 million

standard cubic feet per day ( mmscfd ) in addition to gas derivative products such as Ethane,

Propane, Butane, Condensates and Carbon Dioxide. In addition, the company has standby units

in Kertih and Paka with a total capacity of 750 mmscfd.

The sales gas produced is transmitted via 2,505km Peninsular Gas Utilisation ( PGU )

pipelines to end-users in the power, industrial and commercial sectors. The company also

delivers sales gas to customers in East Malaysia through a 45km pipeline.

The Company currently employs over 2,000 staff located all over the nation. To ensure

that the company meets its business objectives as well as its corporate social responsibilities,

employees¶ capabilities and competencies are continuously enhanced through structured training

programs and by being active members of the communities where they work.

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At PETRONAS, they adopt the functional organizational structure for enabling specialists to

focus on their respective areas.








 









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d Strategic Marketing

d Marketing Operations
d ogistic
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d Finance & Accounting


d Information Technology / Information

Systems (IT/IS)
d Procurement







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d ÊR Planning, Recruitment, Employee


Relations & Security

d ÊR Development and Communication
d Remuneration Management and
Administration
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d Acrylics Complex
d BDO Complex
d OXO Complex
d Technical Competence

d Port Tank Farm


d Êealth, Safety and Environment
d oaste oater Treatment
d †uality Management

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This division is divided into three main departments. The first department is human resources

planning, recruitment, employee relations and security. Organizational manpower planning,

including the recruitment, training and development of staff, union and employee relations, exit

interviews and security falls within the ambit of this department.

The second department is human resources development and communications. This

department¶s main focus is on the planning and implementation of training and development of

staff as well as their succession planning. It is also responsible for setting up and implementing

the performance management system, promotions, employee and marketing communications,

sports and recreation, community and media relations and sponsorships.

The third department is remuneration management and administration. This department

handles all areas relating to the ÊRM policies and guidelines as well as remuneration,

compensation and benefits of all PETRONAS employees. Matters handled by this department

also include human resources management information system, administration of the

performance management system, employee welfare, separation, management of staff services,

asset management, company vehicles and transportation as well as office maintenance services

and telecommunications.

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At PETRONAS, employees are never stagnant. Êere, strengths are nurtured, while competencies

and skills are polished as full support and encouragement is provided for each employee to reach

their full potential. Stepping into the employment of PETRONAS, employees immediately

embark on a journey of learning experience. Our insiders are privy not only to training and

development activities in the form of course under formal classroom settings conducted

internally as well as externally, but also benefit from the casual day to day mentoring and

coaching, on the job training, job enlargement, job rotation and self learning among others too. 

There are some of the more prominent formal programs that PETRONAS have designed

to assist our insiders in improving their knowledge and skills. The formal programs were design

is Technician Development Program (TDP), education grant and developing in house trainers.

The Technician Development Program is notable example of a structured career progression

program, which has benefited many staff. Designed specifically for technicians, it is run

internally, combining classroom courses with on-the-job training and assignments. Through this

program, technicians are able to progress from Tech III to Tech II, Tech I and eventually to a

position of Senior Tech.

For program education grant PETRONAS is always applauding and cheering on their

employees who are willing to go the extra mile in the quest of expanding their knowledge in

fields relevant to their job or future projects and assignments. As a testimony of their

commitment to support the employees in pursuing higher education, we share the education costs

for those who are pursuing the qualifications like diploma, degree, master degree or Ph.D.

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The next program is developing in-house trainers. Superiors are consistently identifying

the subordinates training needs. In order to provide effective and relevant training, PETRONAS

has developed over 30 in-house trainers. These trainers are well equipped to provide training and

development program in areas permit to work training, confined space and AGT, processed

safety workshop, advanced first responder training, first aid training, safety leadership workshop,

job safety analysis and hazard identification training, emergency response plan, basic fire

fighting, portable fire extinguisher, and performance management system.

Besides that for the non-executive, the company continues developing and enhancing

their technical skills and competencies through various structured training programs and

assessment. The PETRONAS Competency Based Assessment System (PECAS) has now been

implemented at all operating divisions. The PECAS ensures that non-executives technical are

able to perform multi-tasking functions at the plants. Training workshops were conducted to

prepare their non-executive technical to undertake the assessment. The company also provides

career progression opportunities to executive level for eligible and experienced non-executives.

The company also encourages self development by promoting the use of PETRONAS e-

earning portal. The PETRONAS e-earning portal currently offer more than 500 modules

covering technical, non-technical, management, business and self-development courses. The e-

earning portal is accessible through the internet thus encourages self-learning at employees own

pace and time. To promote a self learning culture, the company awards certificate of recognition

to employees who have been proactive users of the e-earning portal.

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Recruitment is the process of sourcing the most suitable candidates either internally or externally

to fill up vacant position in the company. Firstly, external candidates will be sourced from write-

in received from external or applications received from candidates through advertisements for

vacant position. Secondly, is submission of applications. Interested candidates are invited to

submit a detailed resume stating personal particulars, employment history, and qualifications

(accompanied with copies of certificates) addressed to company. As an alternative, candidates

may also submit applications using the e-mail address.

Thirdly, candidates who meet the specification of the vacant position will be short-listed

for the interview. Specification is defined in terms of academic qualification, experiences,

competencies and others. In general, the minimum academic qualification at the point of entry

for executive position is recognized basic Degree, Diploma or equivalent professional

qualification in the relevant field according to the requirement of the job. Minimum academic

qualification for non-executive position is SPM or equivalent.

The next process of recruitment is interview. Candidates selected for the interview will be

required to bring along original and copies of their academic achievement and qualification,

document to support past working experiences and other relevant document. After the interview,

the best candidates will be selected for appointment. The appointment will be subjected to the

candidates certified fit for employment by company, has no previous criminal record, has not

been declared a bankrupt.

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PETRONAS pay high attention towards career advancement management for their employees.

They embrace the tradition of looking within before elsewhere to fill vacant positions within

their company. This tradition is strongly backed by their training and development programs,

designed to ensure that their staff never remain stagnant but are consistently growing in

knowledge and skills to take on greater challenges and responsibilities when the need arises in

the future. Their employees are given the opportunity to not only expand their skills and

experiences within the company. There are occasions when staffs are dispatched as delegates to

their associate companies throughout the world. 

This company also use approaches to employee development interpersonal relationships.

In developing new executive, mentoring programs continue to be one of the main building

blocks. Such as programs promote accelerated learning and build loyalty amongst new

employees. In year 2007, 144 new executives were paired with experienced staff as mentors.

These mentors have been trained to provide appropriate guidance and counseling to assist the

new executives through their personal and career development journeys. The Building eaders

Programs remains as an important element of their efforts to groom future leaders for the

company as part of their career development too.

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In ensuring that the company meets its business objective, Key Performance Indicators (KPI) are

established to align organizational targets with individual targets. Through an Intensified

Performance Management System (IPMS), the employees are appraised and differentiated in

terms of their contribution and performance. In addition, the company also conducts a 360

degrees feedback on leadership qualities, focusing on the areas of developing others,

outperforming in their duties, behaving as an owner and inspiring others to do the same.

The rewards and remuneration system clearly differentiated between employees who

outperform and demonstrate strong leadership behavior. The company achieved average of 15

training days per staff, covering both functional skills training as well as leadership development

trainings. Training indicators, form part of all managers KPIs to ensure sufficient is provided on

staff development in the long term.

During the year, various programmes were conducted to further enhance management

and leadership skills of our middle and senior management. The Senior Management

Development programme (INSEAD) was attended by two members of our senior management.

Other management programmes attended by 37 managers and senior executives were the

Management Development programme, Business Management Excellence programme and

Managing Motivation for Performance Improvement programme.

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Succession planning is another important element to ensure sustainability of growth. During the

year, they have developed succession planning for 314 technical executive and manager

positions. Furthermore, the Company encourages staff mobility to accelerate staff development.

For the year, Company achieved mobility of 28.7% through transfer within the company and to

the PETRONAS Group of Companies. The Company has well-placed systems and processes to

monitor and track the development of our employees.

To ensure focus by the senior management on human resource matters, they conduct

monthly Êuman Resource Committee to provide a platform to discuss and deliberate on people

development issues. The company was recognized for its exemplary human resource practices

when it was accorded the Êuman Resource Minister Award 2006 in September 2006. The

recognition was given by the Pembangunan Sumber Manusia Berhad ( a statutory body under the

Ministry of Êuman Resource ) in the large industry category.

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PETRONAS is a fully-integrated oil and gas multinational corporation fully owned by the

Malaysian Government. Generally PETRONAS complies with the Malaysian government¶s or

whichever local government¶s (where it has its operations) rules and regulations in terms of

social welfare including employee benefits or environment concerns. Êowever, in countries such

as Myanmar, the human rights law itself is very low standard, so complying with them may not

be an issue at all PETRONAS but certainly not sufficient from sustainable point of view.

Recommendations for PETRONAS to be a ³Sustaining Corporation´ and it should look beyond

just compliance to the government rules and regulation.

PETRONAS management should actively pursue social equity and human welfare issues

while continue to be in operations in countries where the local government is condemned for

human rights violations such as Myanmar. From the issues, PETRONAS should use its influence

to pressure the local governments to improve their human rights records. PETRONAS also must

report out any improvements it has managed to bring out directly and indirectly. The benefits

PETRONAS are its corporate image will be tremendously improved and not be condemned by

human rights groups while being able to continue operations in those countries.

Êowever, PETRONAS must also be prepared not to continue its business if it doesn¶t

succeed in improving human rights situation. This issue may be difficult considering

PETRONAS is fully owned by the Malaysian government and the Malaysian government¶s

position on Myanmar is to work with the present government in Myanmar to reduce its human

rights violations and not to isolate it.

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