Petroliam Nasional Berhad Analysis And Research Management Essay


This chapter will discuss the back ground of the company, background of study, definition of term problem statement, research objective, research question, significant of study, scope of study and limitation of study.

Background of Company

Petroliam Nasional Berhad is the short name for PETRONAS. PETRONAS is the National oil corporation of Malaysia which was incorporated on 17th August 1974 under the Malaysian Companies Act of 1965. The Malaysian Petroleum Development Act 1974 vested upon PETRONAS the exclusive rights to explore, develop and produce petroleum resources within Malaysia. Since its corporation, PETRONAS has evolved into a fully integrated multinational oil and gas company.

PETRONAS business activities range from upstream oil and gas exploration and production to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; and property investment.


“A Leading Oil and Gas Multinational of Choice.”


We are business entity

Petroleum is our core business

Our primary responsibility is to develop and add value to the national resource

Our objective is to contribute to the well being of the people and the nation.

Shared Values


Loyal to Nation and Corporation


Honest and Upright


Committed, Innovative and Proactive and Always Striving for Excellence


United in Purpose and Fellowship

Organization Structure of PETRONAS

PETRONAS Carigali Sdn Bhd

Through Petronas Exploration & Production (E&P) subsidiary, Petronas Carigali Sdn.Bhd. (Petronas Carigali) has developed capability as a hands-on operator with a track record of successful oil and gas developments. PETRONAS Carigali incorporated on 11th May 1978. The purpose of the formation is to increase Malaysian participation in the exploration and production industry in the country. PETRONAS Carigali works alongside a number of petroleum multinational corporations through production sharing contracts (PSCs) to explore develop and produce oil and gas in Malaysia. Now the company actively expands its activities over 23 countries including Malaysia.

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Under PETRONAS Carigali, it consist ten main divisions which are Strategic Planning, HSE, Business Development, Technology Management, Exploration, Petroleum Engineering, Development, Operation, JV Management and Corporate Services.

PETRONAS Carigali’s Vision:

An E&P Global Champion.

Overview of Exploration and Production Industry

Since PETRONAS Carigali involves in exploration and production Industry, some of us might not be familiar with this industry. Actually, what is exploration and production is all about? Exploration and Production (E&P) industry is also mainly known as upstream industry. In short, E&P industry normally finds and produces crude oil and natural gas. In addition, the upstream oil industries include well exploration, drilling and operation.

The upstream oil industry is important because it determines supply which affects prices in the downstream sector. The upstream sector is primarily concerned with finding and utilizing the available petroleum supply whiles the downstream and midstream sectors that are concerned about the demand of oil and its transportation. 

Background of Study

HRM division in PETRONAS strives to be a strategic partner within the business area, aiming to develop and deliver HR strategies, approaches and services which generate productive impact for the workforce and create value to the organization. The various function along the HR value chain are varied and include organization design, people training, talent sourcing, people development, performance management, remuneration and employee/industrial relation.

In HRM division, they move along with the technology advancement through reducing the manual workload of these administrative activities and began to electronically automate many of HR process by introducing specialized Human Resource Management System (HRIS). HRIS is expected to drive Human Resource (HR)’s transition from a focus on Human Resource Management (HRM) to Strategic Human Resource Management (SHRM). This strategic role not only adds a valuable dimension to the HR function, but also changes the competencies that define HR professional and practitioner success.

Definition of Term

Human Resource Information System

A human Resource Information System is a systematic procedure for collecting, storing, maintaining, retrieving, and validating data needed by an organization about its human resources, personnel activities, and organization about its characteristic. (Kovach and Catcart, 1999)

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HR Processes

HR processes starts by planning labor requirements. This include, resource specifications, long range planning, forecasting supply and demand of labor, staffing, applicant qualification, training programs, costs analysis, salary, contract type, and other related issues. Other key HR processes involve recruiting, selecting, performance appraising, training and orientation, career development, occupational health and safety, and compensation and benefits.(Boeteng,2007)

Problem Statement

The use of Human Resource Information System (HRIS) has been advocated as an opportunity for human resource (HR) professional to become strategic partner with top management. Decreased costs, improved communication, and decrease in time spent on HR activities should create an environmental where HR department in would play a more strategic role in the organization. The idea of HRIS would allow the HR function to become more efficient and provide better information for decision making.

Consequently, the idea of HRIS is seen as an important value towards HR department as a strategic partner of organization. The question remains whether HRIS fulfilled its promise; this study is an initial attempt to measure the factors that influence the importance of Human Resource Information System (HRIS) in HR department towards its workforce and organization generally.

Research Objective

To identify the factors that influencing the importance of Human Resource Information System in Petronas Carigali Sdn Bhd (PCSB)

To determine the assessment of the factors that influencing the importance of Human Resource Information System in Petronas Carigali Sdn Bhd (PCSB)

Research Question

What are the factors that influencing the importance of Human Resource Information System (HRIS) in Petronas Carigali Sdn Bhd (PCSB)

What are the assessment towards the factors that influencing the importance of Human Resource Information System (HRIS) in Petronas Carigali Sdn Bhd (PCSB)

Scope of Study

This study will deepen the knowledge of Human Resource Information System (HRIS). The topics that cover in this study are to notify the user of the system the importance of HRIS towards achieving its organization strategy. Other than that, to determine factors that influencing the importance of HRIS in PCSB. All the sources and references will referred to primary data and secondary data such as journals, news paper and also reliable article will be supported for the research purpose.

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1.8 Significant of Study

To Researcher

The researcher will gain greater understanding and knowledge in human resource function generally and specifically in human resource information system (HRIS). In addition, this study will provide the necessary information about the research methodology and enhance the researcher analytical skill.

To Faculty

This study will benefit the faculty for future reference or researcher purpose for lecturers, students, or other researcher who would require the information regarding this research area. This study will reveal how the reality would be compared to theorist that been thought in the classroom. This will be guidance for students to prepare what they are going to be expected once they started their industrial training.

To company

This study will help the company to enhance their understanding concerning human resource information system (HRIS). In addition, to develop the awareness the importance of HRIS towards their daily works in support their key business strategies.

Limitation of study

Time constraint

A good research may take years to complete, however the time given to complete this study only takes for only 5 months. To chase the very limited dateline, this research requires a longer time to achieve a better and more reliable findings and results.

Lack of experience

The researcher never been exposed to compose a proper research previously. In result, it takes quite some time for the researcher to understand and learn from previous research. Upon this, it limits the researcher’s skill and knowledge to conduct this study.

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