Table of Contents

1. Introduction 2
2. Company Background 2
2.1 Petronas's Vision, Mission and Objectives 3
2.1.1 Vision 3
2.1.2 Mission 4
2.1.3 Objectives 5
3. Brand Style Guide-Petronas 5
4. Organizational Value Creation System 8
5. HRM Practices at Petronas 11
4.1 The following advantages are achieved by the effective use of human resources:13
4.2 Strategies Suggested for Petronas 13
6. Marketing Strategies at Petronas 14
7. Discussion of the Petronas Value Creation in line with HRM and Marketing 16
8. Conclusion 17
9. References 18

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 1. Introduction

The aim of this study is to see and appreciate Petronas' marketing and HRM departments

while identifying organizational identity and values and proposing activities that maximize

their organizational value. Nearly all companies generate vision statements with the goals and

priorities of increasing aspirations and dedication. Sadly, these "good words" remain a

misconception as stated by Williams (2002) when businesses address the difficulty of

achieving its performance expectations, budget objectives and organizational change

programs. It leads to cynicism rather than hope (Bartlett & Ghosal, 2002). Research has

shown the need for a comprehensive analysis in human resources management, development

and the role of organizational values at all levels in achieving the optimistic targets indicated

in the declaration of corporate vision. Unfortunately, the vast majority of companies have still

not understood the strategic value of HR and marketing in the strategic planning process

(Sikulas, 2001). Those large assets are not well-estimated and managed, while human capital

constitutes the basis of value creation in the modern economy (Kaplan, Robert, Kaplan &

Norton, 2001). Petronas Sdn Bhd Malaysia is the main subject of this study and will

concentrate on value development through HRM and marketing activities.

2. Company Background

PETRONAS Carigali SDN BHD (PCSB) is a wholly owned subsidiary of PETRONAS in the

upstream sector for exploration and development. Carigali had to be fully involved in all

fields of oil and gas discovery, development, and production activities in tandem with

PETRONAS share contracts and all of its own. With an company with a record of productive

oil and natural gas developments in Malaysia, the organisation has been encouraged to

expand its potential. PETRONAS Carigali fulfills its demands for discovery, growth and

production of oil and gas in Malaysia through production sharing agreements (PSCs), which

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include numerous multinational oil and gas collaborations (Petronas, 2019). Without the

proper use of the management of human capital, exploration and development (E&P)

operations carried out by PCSB will not be effective. It is essential as an oil and gas

corporation that workers obtain appropriate training and growth. Since operating in a high-

risk setting is normal in the oil and gas industry as Malaysia's main oil sector is offshore and

requires many skills to be healthy and effective (Adagbabiri & Okolie, 2020). Good strategy

and practices to retain the organization's employees based on the oil and gas industry are

therefore needed.

2.1 Petronas's Vision, Mission and Objectives

The vision statement and mission are also important to remind the organisation that they exist

and the manner in which they are to accomplish the goals and objectives.

The mission and purpose statement were long established by PETRONAS. In 1995,

PETRONAS revised its strategy to reflect a dream of becoming a multinational corporation

of choice following its attempts towards globalization. Below is the discussion on the three

fundamental values of PETRONAS and the belief system they have cherished.

2.1.1 Vision

The vision for PETRONAS was "to lead a multinational oil and gas choices company." This

defined oil and gas as the core business and stressed the importance in value adding of the

primary resource of integrated upstream and downstream activities. PETRONAS wanted to

increase their weighting towards gas and petrochemical, in line with the industry trend

downstream and the relevance of the value chain. It expressed its desire to leverage non-

strategic activities and units on the core companies. PETRONAS developed approaches to

concentrate on certain industry sectors, geographically different areas and to improve

competition in a single market area.

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In 1994 PETRONAS began its attempt to become a worldwide multinational corporation by

globalization. A substantial proportion of its activities is also foreign to Malaysia and in other

countries. Just like other multinationals, PETRONAS has not only been in Malaysia, but also

in other countries that operated with multinationals and multicultural companies. The vision

showed that in 1996, as such, the management had undertaken a reengineering process to

make PETRONAS more internationally competitive. The dream also stressed that all owners,

customers and partners are a business of choice and favourite.

2.1.2 Mission

In order to explain the reasons for the existence of PETRONAS mission statement, the vision

was strengthened and the corporate leadership was articulated to achieve a view.

PETRONAS has listed the following of its mission statements;

"We are a business entity"

"petroleum is our core business"

"our primary responsibility is to develop and add value to this

National resource"

"our objective is to contribute to the well-being of the people

And the nation"

The declaration of the mission stated that energy, which consists of oil and gas, is the core

sector. Oil must be explored, developed, produced, processed and processed as a natural

resource into consumer products such as petroleum, ethane for use in the petrochemical

power plant, and gas for power plants , for example. Thus, by harmonizing upstream with

downstream activities, PETRONAS could maximize its natural resource value chain. The

upstream activities involved the exploration and production of petroleum, while the

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downstream activities included the processing and transformation of natural resources into

other petrochemical facilities and feedstock. The mission also stated the goal of contributing

to the well-being of the people and the country. PETRONAS believed it had a duty to

promote natural resources and to protect the health of the citizens and nation that it believed

possessed the wealth of the country's natural resources as it was responsible for developing

natural resources and granted exclusive rights under the PDA.

2.1.3 Objectives

Taking the vision and mission as basis for management of the group, PETRONAS Business

Unit Exploration and Production (E&P) has identified clear targets for achieving the vision

and mission of the group.

Many of these approaches have been incorporated into synergies across industries and build

value chain to the business to achieve the PETRONAS E&P objectives. PETRONAS has

acquired the alliance of service companies to reduce development costs and strategic

collaborations with other companies in its overseas businesses, with a view to sharing the

risk.

3. Brand Style Guide-Petronas

Branding Approach is also used synonymously with the words 'brand design' or 'concept

structure' and has been empirically shown to have a significant effect on market share,

marketing effectiveness, competitiveness and company reputation ((Aaker and

Joachimsthaler, 2000, p. 8). Previous empirical work offers a variety of ways for marketers to

categorize a company's overall branding strategy into branding strategies of the ideal kind.

Yet real-life branding strategies rarely suit those ideal-type branding strategies. Rather than

systematically pursuing a priori identified branding policy, businesses 'mix and match'

various branding strategies and determine, on a case-by-case basis, which trademarks to

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allocate to which goods (Laforet and Saunders, 1999; Rao et al., 2004, p. 126; Laforet and

Saunders, 2007; Keller, 2013, p. 364).

In addition to some informative reports from the British business non-sustainable sectors

(Laforet and Saunders, 1994, 1999, 2007) and the financial services industries (Devlin and

McKechnie, 2008), as well as a variety of empirical studies on the pros and cons of various

approaches (Aaker, 2004; Kapferer, 2012, p. 309; Keller , 2013, p. 358), published academic

research offers mostly anecdotal evidence for when and why companies actually apply which

branding strategy across their product lines within a country.

The departments and agencies face difficulties in terms of talent management in the

Malaysian public sector. The phenomenon of brain loss is one of the main problems in the

red tape program. The reasons for dismissal are various and empiric research from the Public

Service Department (PSD) has demonstrated that many qualified people quit the public

sector. They work in important fields such as healthcare, engineering and research and

technology. Within the justifications for resignations are the public sector social standards,

poor morale and heavy workload. (World Health Organization, 2014).

Employer branding is described as a process involving the preparation and execution of a

campaign aimed at affecting the image of the target employee as a desirable employer

(Christiaans, 2013). Research has shown that an organizational branding strategy has many

advantages; first, it assists an company in recruiting and retaining current and future

employees (Backhaus & Tikoo, 2004); and second, it can minimize costs , improve employee

efficiency and contribute to competitive advantage (Backhaus & Tikoo, 2004; Barrow &

Mosley, 2005). Big corporations perform company branding (EB) in Malaysia. Petroliam

Nasional Berhad (PETRONAS), EB practice by encouraging their “employee value

proposition” (EVP) to encourage young students to join the company and 'be part of the

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growing oil and gas industry' (Leadernomics.com, 2014). This idea is yet to be discussed in

the public sector in Malaysia, however.

There has been growing interest in branding in the past three or four years that involves

branding on the country. But it ends there and even in the Malaysian 11th Program no note

was made of it. While most employees have their own divisions / corporate units, this is

inadequate as company branding includes marketing, management of human resources and

communication (Barrow & Mosley, 2005). The campaign on EB is, however, also known as

public sector 'engagement.' In order to succeed, employers should be able to recruit and

differentiate prospective workers with their own exclusive 'employer interest proposal'.

In continuation to above, as Petronas focused on employees, it has earned some awards as

well. In 2019, PETRONAS (Petroliam Nasional Berhad) has been listed by Randstad as one

of the biggest employer' companies in Malaysia.

It is the second time that PETRONAS has taken the lead as Malaysia's most glamorous

employer. AirAsia Berhad and Sime Darby Berhad also rate among the top ten attractive

employers.

The consumer branding has been given importance at Petronas. In the study on Petronas,

Ramli (2009) concluded that: Firstly, brand value and the relationship of brand loyalty show

that new customers can be expanded, such as the growth of recognition and reassurance

which contribute to reduced marketing costs and to a competitive advantage for the industry.

Second, the relationship between brand value and brand confidence implies that PETRONAS

brand is highly familiar with local community brand identity and promotes the brand's

contribution to society through consumer-involving market strategies. Third, brand value and

the perceived premium partnership illustrate the fair pricing provided by PETRONAS

regardless of customer buying behaviour and it leads to a possible market expansion

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approach to other market new product lines. Fourthly, the relationship between brand and

market value suggests that it was easy for customers to access details for PETRONAS and

allows them to buy oil goods. It allows. Fifth, PETRONAS has a high degree of comparative

advantage in the market because of its association between the company stock and other

exclusive company properties. This is because the distinction in product and marketing

strategies introduced by the company was adapted particularly for the local cultural approach,

such as labeling, advertising and delivery.

4. Organizational Value Creation System

PETRONAS value system has been developed to explain the values advocated by the

organization and the expectations the organization has for its employee. PETRONAS

implemented four sets of principles.

"Loyalty"

"professionalism"

"integrity"

"cohesiveness"

The term loyalty applies to the nation and corporation's workers loyalty. A loyal staff

maintained a high corporate image and would not comment on the company and country with

derogations. Within the internal forum, the staff would provide constructive criticism, support

and participate in ensuring the company's mission, roles, objectives in its activities, whether

in-house, outside seminars, talks and social activities.

In PETRONAS terminology professionalism means dedicated, creative, constructive and

always aiming for excellence. The workers should preserve consistency and high behavioral

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integrity in carrying out their duties and firm decision-making based on an objective

evaluation of the company's conducting affairs.

Integrity means upright and truthful. It referred to the trustworthiness of employees in

preserving all the secrecy of the business and affairs of the company and put the interest of

the company above personal interest and profits.

The researchers report that workers' productivity is how the organization measures employee

capacity in comparison with organizational performance by using their entire merchandise.

Productivity is the result level in which employees can do their best to achieve their

organizational objectives (Kandi, 2012). In addition, productivity can be understood to

improve the organization 's output, energy optimisation and overall production by leveraging

the available sources (Olaniyan & Ojo, 2008). In other words, the input products of a

company, such as labs, tools, equipment and many others, are transformed in goods and

services (Leblebici, 2012).

Productivity of workers can be increased indirectly by supplying their employees with

training and growth. By so doing, the company, which gives the individual a clearer view of

their job performance, will improve their work efficiency. Therefore, when dealing with

expertise, skills and strengths to help them to produce greater outcomes, they will do well in

terms of their efficiency. In fact, the efficiency of workers should be increased on the basis

of efficient workplace pay. In addition, the employee's satisfaction with the company will

influence the calculation of job efficiency. For example, as the requirements for training and

advancement provided by the company were met, their satisfaction rates improved.

The corporation will also benefit from staff efficiency (Hallgren & Olhager, 2009). Tahir et

al. (2014) stated that, through inspiration, a company can achieve its aims and priorities,

innovate workers, make employees more successful as they are dedicated to the enterprise

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and contributing more to it. The well-being of the company can be measured by a healthy

relationship between companies and employee engagement. In fact, effective training for

workers may have a positive effect on company on workplace efficiency. The company's

workers can quickly solve any challenge with increased interpersonal preparation, and

workers can also make use of the organization's training and growth.

In the 21stcentury, human resources managers suggested one of the key tasks to address

problems relating to training and growth (Stavru, Brewster and Charalambou 2004) that had

to do with the work atmosphere for workers, including senior management. Training and

development apply, according to Niazi (2011), to the method of implementation or learning

of skills, abilities and competences required to carry out a particular task. Training and

growth are most frequently the most important methods for narrowing the distance between

actual results and anticipated future output. The researchers conclude that training and

development is the secret to the growth and sustainability of an organisation, as workers and

operational productivity and performance can be improved by the training and development

programme.

Education and learning initiatives will increase the efficiency of workers by enhancing their

talents and skills. This is critical that an organisation run a training and development plan,

because organization success has a direct connection with employee engagement or

profitability, as it has an effect on the company's return on the investment. Education and

growth also help both the workers and the company over time (Khan, Khan & Khan, 2011).

The human resources will select the correct form of training to ensure the employee is able to

learn the necessary qualifications to operate the company in order to provide a successful

training for employees.

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A well-planned training and learning program are a daunting challenge as staff must define

modes of instruction and types of implementation, set a training date and choose teachers.

Professional preparation often contributes to personal advancement in employees. This is

how they know everything from professional training in a limited period. This can be seen in

Zin, et.al (2013), which describes the positive relationship of job rotation in the growth of

professions. Koontz and Mills (1983) backed these claims by arguing that work turnover is

the highest training style and providing detailed details to make it easier for employers to

secure such jobs for their workers such as the Oparanma and Nwaeke, (2015).

Furthermore, professional preparation will support new workers in career-oriented jobs and

strengthen old employees' expertise and experience in order to improve their working

standards and to establish stronger connections between employers and employees.

5. HRM Practices at Petronas

Human Resource Management (HRM) is the organizational role that focuses on people such

as recruiting, pay performance evaluation, market development, protection, health and

wellbeing, employee motivation, networking, management, and training (Heathfield, 2008).

HRM is, in a simple word, the management role which focuses on having, recruiting,

empowering and retaining skilled employees.

The standard of the person he recruits will decide an organization's dominance. It is said that

the achievement for most organizations is the discovery of the employees with the

capabilities to effectively accomplish the errands needed to achieve the vital goals of the

organization. To ensure that the company hires and retains the professional staff, judgments

and procedures of staffing and human resources administration are very relevant.

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Both businesses worldwide depend on maintaining workers' skills and knowledge in this

current worldwide working climate. The key problems in both companies are staff

productivity and the maintenance of information. New positions require a comparatively high

expense and raise the likelihood that the applicant is not willing to replace the worker

previously hired. HR teams are now seeking to have benefits that cater to their staff and

reduce the risk of knowledge loss.

The use of human resources (HR) is an organizational perspective that demonstrates how a

business uses its employees efficiently. Organizations typically employ the idea of the use of

HR to measure job outcomes in comparison to job costs. In its article Roberson, Holmes &

Perry (2017) defines hr use as a measure of the employee's profitability. The usage is very

important to have an outstanding HRM project and productive project management.

Table 1: Ranking on the Importance of Having Effective HR Utilization

Source: Mursalim, 2014

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In the petroleum and gas industry, the use of human resources is not a reason for failure but

becomes extremely important when choosing to hire a project manager and his subordinate.

As an individual gets a salary in accordance with whether or not they become top businesses.

If for example, a petroleum and gas service provider is unable to locate an operational

company's business, the service company is not liable and would not purchase the costs.

Time to raise sales but not to deliver will cost the company money (Roberson, Holmes &

Perry, 2017), as a result of weak human resources management.

4.1 The following advantages are achieved by the effective use of human

resources:

1. Reduction in cost.

2. Clarity in performing tasks.

3. Saves money as well as time.

4. Less wastage in case of resources.

5. Organizational goals can be achieved faster.

The manager is obligated to find the exact person to do the correct job and delegate the

position according to an employee's competencies. This will then be done successfully only

by workers (Mursalim, 2014).

4.2 Strategies Suggested for Petronas

Based on the discussions above, the following strategies have been proposed:

Human Resource Practices Strategies

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 technical skills, but should assign employees to
training involving stress management, self-
confidence and emotionally controlled
management.
Performance Appraisal ● Regularly fair and equal performance assessment
should be performed, covering all levels of
organizational hierarchy.
● Include a section on self-evaluation in
performance assessments, giving workers a chance
to think about their performance.
Compensation ● Develops an appealing compensation plan to
support both the company and the worker,
including, for instance, an injury, health and life
insurance plans, so that the worker is with the firm
Employee Empowerment and ● Exercise employees to make their immediate
Ownership decisions or to give them the authority to perform
their duties and to take on responsibility (own the
job)
Work Environment ● Improve the organization's cultural diversity

6. Marketing Strategies at Petronas

The marketing method decides what goods, services and the approach for use in advertising,

communication and business growth will be of interest to the consumers. It is an automated

mechanism by which businesses create loyalty for consumers and good relationships with

customers in order to gain customer interest in return.

There are few options to build Petronas in order to meet its corporate goals, and to recognize

their goods in the country (worldwide). The company may use TV / video ads, print

advertisements and the idea of e-marketing to promote the business and its product in a

global marketing context. The organization also held management meetings in order to hit its

target audience. This promotion and communication strategy will reach consumers in

14
different parts of the world, especially target markets or consumers who need oil or gas

supplies.

Petronas should use its daily practice, in the light of its growth strategy, to move the best

managers from positions in one business unit to assignments in the other two business units

to facilitate the transfer of expertise, strategies, know-how and creative ideas from one

organization to another. Petronas should also be mindful of the future consequences of

promotions in order to achieve success in globalization. Carefully analyse competitive

research, pricing methods, marketing techniques and procedures for business growth. Most

businesses and corporations participate in foreign marketing and rely on it with a goal to raise

revenues, revenue and customer awareness.

International marketing also provides incentives for business organizations to grow and

enhance their products, services, strategies, processes and operations. It is because foreign

markets offer businesses with a high demand product or service tremendous business

opportunities in line with news, cultural change, popularity and marketing strategies that are

especially useful to them. There are very few examples of marketing campaigns like the

"coffee break" campaign for festival seasons like Aidilfitri, the Chinese New Year and

Deepavali. The 'Coffee Break' campaign was intended to promote the awareness of road

safety and enable travelers to take a break and refresh themselves before continuing their trip

home during the festive season, while their families enjoy a variety of food and drink sold at

the Kedai Mesra Outlet. The goal was to provide a better understanding of the safety of their

vehicle.

Secondly, the announcement of the latest promotional campaign for Petronas. The company

has unveiled its new retail service campaign with its business partners, including Quick

Service Restaurants, Banks, Touch & Go and E-Pay, joint promotions. They were allowed to

15
participate and take advantage of the exclusive promotions provided at selected Petronas

service stations nationally for a two-month duration. New TV reports were also transmitted

over local news networks. Thirdly, the introduction of 'Jalan-Jalan Cari Makan' in the media

on TV3 is promoted. Together with Sistem Television Malaysia Berhad (TV3), the LPG

business department via gas Petronas has launched another round of their 'Jalan-Jalan Cari

Makan' programme.

The curriculum also provided safety tips and instructions for the use of an acceptable LPG

cylinder. First is the opening of the first comfort store, Mesra Drive-Thru. In an effort to

provide greater convenience for the customers, it launched Petronas 'Mesra Drive-Thru,' a 24-

hour drive-thru convenience store (C-store). First is the creation of a better nation through

education. The Petronas continued to support and encourage different schools throughout the

country to provide greater learning opportunities for students, particularly in rural schools.

They also given funding and a more desirable learning atmosphere to the students in

Teknologi Petrona University. This is one of the students' best chances.

There are few ways to make Petronas dependent on understanding the needs and desires of its

target markets and production of the desired satisfaction to achieve its organizational goals.

However, Petronas is able to obtain more insight and expertise in its industry as they

concentrate on the foreign marketing, thus offering customers more creative services and

goods.

7. Discussion of the Petronas Value Creation in line with HRM and Marketing

As an organisation, PETRONAS directs its management plan and policy, describes its

coaching and growth activities for the long term. For their coaching and advancement of

staff, Petronas has developed the use of professional coaching, in-house coaching and

education grants. Compared to the industry like SHELL Global or ESSO, their workers need

16
a skilled training program such as advertisement and media according to their professional

experience. A module with members of alternative companies is more frequent. This makes

for a great deal of networking and learning from one another. Therefore, PETRONAS

Company profits from training and growth. PETRONAS properly employed training and

development. The use of PETRONAS, for example, allows the improvement of employee

jobs and the personal growth of employees. In this case, further training and development

would allow PETRONAS to progress. This will cause the company to be very successful in

training and development, although it will bring some disadvantaging for the company.

8. Conclusion

PETRONAS may well be known and established around the world as a petroleum and gas

firm. The company has currently been in service for 3 decades. But the developments in

industry keep fluctuating. The number of transactions often rises and decreases irregularly.

However, several approaches will exacerbate this issue. With its workers PETRONAS has

learned different curriculum and growth activities. The productivity of staff is the key

problems in a business through such recruitment and employment to establish a long-term

competitiveness and the effective management of an enterprise. It is a good rule to dedicate a

wonderful worker, so that the company can therefore improve its productivity. A proposal

made by the Institute Petronia, Institute Teknologi Petronass (UTP), Institut Teknologi

Petroleum Petronass (Instep) and Petronass Management Training, may suggest land

organisation, and management techniques. Any qualified teachers from other countries will

collectively be invited to direct employees. Therefore, ideally PETRONAS will profit from

obtaining desirable resources and increasing the productivity and performance of its

employees.

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PETRONAS will also upgrade the professional training curriculum. They should, for

example, incorporate a course that inspires workers. For example, some advanced IT systems,

software, programs or algorithms could be introduced to enhance employees ' current skills.

In this scenario, workers can learn about to improve their skills so that they can make sense

of their new employment. PETRONAS also guarantees that workers are well-trained by their

employers in a health setting. In fact, new skills are being taught by the company on modern

technologies of current workers. This is that it will discourage workers from resolving

disputes. Shell International, for example, maintains that engineers have learned properly and

are ready to incorporate safety standards by educating them in drilling, service, repair and

preparation.

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