Strategic-Human-Resource-Management-Proposal Latest

[Audio] Faculty of Accountancy, Management and Economics Department of Business Studies Bachelor of Arts (Honours) in Business Administration BBBHR3214 - Strategic Human Resource Management Proposal Prepared for the Board of Directors of PETRONAS Liew Jian Feng 2550070 Lau Kin Hang 2550048 Kevin Chong Zheng Weng 2550170 Jeffrey Lam Chun Kiat 2550168 EXTERNAL HR CONSULTANT TEAM Strengthening Human Capital to Support Business Growth, Innovation, Competitiveness, and Long-Term Sustainability.

[Audio] Our Role & Purpose Why We're Here As external HR consultants, we evaluate PETRONAS's current HR practices and recommend Strategic Human Resource Management (SHRM) strategies to improve organisational performance and long-term competitiveness. Key Focus Areas Address workforce challenges from digital transformation and global competition Transform HR from administrative function to strategic business partner Improve performance, leadership, talent development, and sustainability Lau Kin Hang 2550048.

[Audio] PETRONAS at a Glance Founded Established in 1974 as Malaysia's national oil and gas company Global Reach Operations in 100+ countries across upstream, downstream, LNG, and renewables Economic Impact Major contributor to national income, employment, and industrial development Future Focus Sustainability, digital transformation, and clean energy initiatives Lau Kin Hang 2550048.

[Audio] Current HR Challenges PETRONAS faces several workforce-related challenges that may affect long-term competitiveness. Skills Gap Talent Retention Leadership Succession Digital transformation requires new skills in AI, data analytics, and automation — many employees are not yet prepared. Highly skilled professionals may leave for better opportunities, flexible environments, or international companies. Senior leaders approaching retirement risk taking valuable knowledge with them without proper succession planning. Engagement & Work-Life Balance Sustainability & Innovation Pressure Employees expect meaningful work, career growth, and flexible arrangements. Unmet expectations reduce motivation. HR must align workforce capabilities with sustainability goals while maintaining operational efficiency. Lau Kin Hang 2550048.

[Audio] Why SHRM is Needed Traditional HR vs. Strategic HR What SHRM Delivers for PETRONAS Right skills and capabilities for future growth Improved employee engagement and reduced turnover Stronger leadership development Support for digitalisation and sustainable energy transition Traditional HR Strategic HRM Administrative focus: hiring, payroll, compliance Aligns HR with business objectives to drive organisational success Key Insight: Employees are PETRONAS's most valuable asset — innovation and competitiveness depend on skilled, motivated people. Lau Kin Hang 2550048.

[Audio] HR Strategy Must Mirror Business Strategy PETRONAS's business priorities require HR to act as a strategic partner, not a separate function. Digital Transformation Sustainability HR must provide digital training and recruit talent with advanced technological skills. HR should develop green policies and encourage environmentally responsible practices. Global Expansion Innovation Align workforce capabilities with future business needs to drive competitive advantage. Strengthen leadership development, cross-cultural communication, and international talent management. Lau Kin Hang 2550048.

[Audio] STRATEGY 1 Digital Upskilling & Continuous Learning The Approach As the energy industry becomes increasingly digitalised, PETRONAS must invest in comprehensive training programmes covering: Automation, AI, cybersecurity, and cloud systems Data analytics and digital platforms Online learning, workshops, and certifications University and tech company partnerships Expected Outcomes Improved employee competency and innovation Greater workforce adaptability Sustained competitiveness in a rapidly changing industry Kevin Chong Zheng Weng 2550170.

[Audio] STRATEGY 2 Talent Management & Leadership Succession Identify Retain Provide clear career pathways Spot high-potential employees early Develop Mentoring, training and job rotation Many senior employees possess valuable experience and technical expertise. Without proper planning, the company may face leadership gaps. PETRONAS should identify high-potential employees early and provide leadership development through mentoring, workshops, job rotation, and international assignments. Clear career pathways motivate employees and improve retention — employees are more likely to remain loyal when they see opportunities for advancement. This strategy helps develop future leaders, reduce talent shortages, and maintain organisational stability. Kevin Chong Zheng Weng 2550170.

[Audio] STRATEGY 3 Employee Engagement & Work-Life Balance Building a Supportive Culture Employees who feel valued and supported demonstrate higher productivity, stronger commitment, and better job satisfaction. Listen Flexibility Wellbeing Regular engagement surveys and open feedback programmes Flexible working arrangements and work-life balance policies Mental health support and wellness activities Kevin Chong Zheng Weng 2550170.

[Audio] Summary & Next Steps Digital Upskilling Invest in continuous learning, AI, data analytics, and tech partnerships Talent & Succession Identify high-potentials, develop leaders, and create clear career pathways Engagement & Wellbeing Flexible work, mental health support, and open communication Strategic Alignment Ensure HR operates as a true business partner supporting PETRONAS's long-term goals By implementing these SHRM strategies, PETRONAS can fully utilise its workforce, strengthen leadership, and sustain global competitiveness. Kevin Chong Zheng Weng 2550170.

[Audio] SHRM STRATEGY 4 Performance-Based Reward & Recognition PETRONAS should reward employees based on performance, innovation, teamwork, and contributions to organizational goals. High performers can receive bonuses, salary increments, promotions, recognition awards, and career advancement programs. Transparent appraisal systems ensure clear expectations. Programs like "Employee of the Month" and innovation awards motivate stronger contributions — boosting motivation, retention, productivity, and a high-performance culture. Kevin Chong Zheng Weng 2550170.

[Audio] SHRM STRATEGY 5 Green HRM & Sustainability-Focused Workforce Development As PETRONAS moves toward sustainable energy, HR should integrate green practices into recruitment, training, performance management, and culture. Sustainability Training Green Workplace Green Talent Educate employees on environmental responsibility and energy efficiency Reduce paper usage, promote digital operations Recruit employees with sustainability-related skills for future industry transformation Jeffrey Lam Chun Kiat 2550168.

[Audio] Theoretical Foundations Human Capital Theory states that employees' knowledge, skills, experience, and abilities are valuable organizational assets. Companies investing in development achieve higher productivity and long-term success. Resource-Based View (RBV) explains that human resources become a source of sustainable competitive advantage when employees possess unique, hard-to-imitate capabilities..

[Audio] Applying Theory to PETRONAS Human Capital Theory in Action RBV in Action Develop specialized expertise in energy technology, sustainability, and digital systems to maintain competitive advantage in the global market. Invest in training, leadership development, and continuous learning. Skilled employees become more productive, innovative, and adaptable — directly supporting growth. Strategic Mindset Investing in employees is not a cost — it is a long-term strategic investment..

[Audio] BENCHMARK CASE Learning from Shell plc Shell has invested heavily in digital workforce transformation and leadership development, providing continuous training in digital technologies, sustainability, and innovation management. The company also focuses on employee engagement, diversity, and flexible working arrangements. PETRONAS can increase investment in employee development, leadership succession, and workforce digitalization. Digital & Sustainability Training Employee Engagement & Diversity Improved Workforce Adaptability & Global Competitiveness.

[Audio] Expected Benefits to PETRONAS Productivity Talent Retention Leadership Continuity Stronger technical and digital skills drive efficiency Better career development and performance rewards reduce turnover Succession planning ensures strong leadership pipeline Employee Engagement Global Competitiveness Long-term sustainability, innovation, and market leadership Higher job satisfaction and stronger organizational commitment.

[Audio] Implementation Challenges High Training Costs Resistance to Change Digital transformation and leadership programs require significant investment Some employees may be uncomfortable adapting to new technologies and methods System Implementation Measuring ROI Difficulty measuring immediate impact of HR investments on business performance New HR systems and performance processes require time and restructuring Key Insight: These challenges can be managed through proper planning, communication, leadership support, and gradual implementation. Liew Jian Feng 2550070.

[Audio] Implementation Plan Digital Training Launch Policy & Performance Roll out training and leadership programs. Update HR policies and review systems. Workforce Assessment Continuous Monitoring Identify skill gaps and leadership needs. Track performance and outcomes continuously. The implementation process should involve collaboration between HR departments, business leaders, and employees across all phases to ensure alignment with business goals and SHRM objectives..

[Audio] HR Metrics & Cost Considerations Key HR Metrics Resource Investment Budgets needed for training programs, digital learning platforms, leadership development, HR technology, and employee engagement initiatives. External HR specialists or consultants may be required. 1. Employee turnover rate & engagement score 2. Training completion rate & productivity Key Insight: Long-term benefits — higher productivity, stronger innovation, improved retention — can outweigh the initial expenses. SHRM is a strategic investment, not a short-term cost. 3. Leadership readiness & absenteeism rate 4. ROI of training programs via performance improvements.

[Audio] Final Recommendation to the Board As external HR consultants, we strongly recommend PETRONAS adopt a strategic approach to HR management. Digital Upskilling Talent & Leadership Prioritize digital and technical skill development across all levels. Strengthen talent management, succession planning, and performance-based rewards. Strategic HR Partner HR must evolve from administrative function to strategic business partner driving innovation and sustainability..

[Audio] Conclusion Strategic HRM plays a critical role in helping PETRONAS achieve its business goals and long-term sustainability. Address Workforce Challenges Employees as Strategic Assets Digital transformation, talent retention, leadership succession, and engagement require strategic HR responses. By investing in human capital — through upskilling, talent management, and engagement — PETRONAS can grow, innovate, and remain competitive globally..

[Audio] Presentation Video. Presentation Video. Liew Jian Feng 2550070.