Strategic HRM Challenges in the deregulated Hydrocarbon Sector

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APM Dismantled APM Dismantled “Strategic HRM Challenges in the deregulated Hydrocarbon Sector” HRM Scenario Planning 2002-2007 Sh. Nandlal Narayanan & Team Reliance Industries Ltd. Petroleum Division Presented at HR Round Table organized by ISPe & UPES, Dehradun

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UPES does not own the content in this presentation. These are presentations presented in 2002 during the 2nd HR Round Table.

Transcript of Strategic HRM Challenges in the deregulated Hydrocarbon Sector

Page 1: Strategic HRM Challenges in the deregulated Hydrocarbon Sector

APMDismantled

APMDismantled

“Strategic HRM Challenges in the deregulated Hydrocarbon Sector”

HRM Scenario Planning 2002-2007

Sh. Nandlal Narayanan & TeamReliance Industries Ltd.Petroleum Division

Presented at HR Round Table organized by ISPe & UPES, Dehradun

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The views expressed in this presentation are the professional & personal views of the presentation team. These are derived from

personal experiences and thoughts. These do not reflect the organization's

philosophy or strategy

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Administered Price MechanismThe evolution

No controls on Petroleum Products Upto 1938

1948 Valued Stock Account Procedure

1939 - 48Oil Companies maintained pool

accounts

1977 APM

2001 Beginning of MDPM

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Impact - Circa 2002Shift of Focus

APM MDPM

Regulator Market

•Uniform Pricing- Price not a pull•Perception around Services, Quality & Quantity - Specific to respective retail outlet• No perceived need for tech up-gradation•Brand and positioning not required

•Differential Pricing - Price Pull•Perception around Services, Quality & Quantity - Specific Service Provider•Need to have strong tech. focus as an enabler•Need to have strong brand & sound positioning

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Elements of BusinessStrategy

Response time

Speed

Emphasis on Service and

customer

Mkt. responsiveness

New value added services

Innovation

Dynamic

Systems

From regulated ambience to - market driven environmentThe Change. .. …...

Think GlobalAct Local

Philosophy

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Augmented Services

Convenience Services

Threshold Services

Time - t

Service

Attitude

The Retail Value ChainHow does one attract the customer in post APM era ?

Y-02 Y-03 Y-04 Y-05 Y-06 Y-07 Y-08

Early bird advantage

Key differentiator

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Degree of Replication

Degree ofImplementation

Low

HighLow

High

Infrastructure

Technology

Service Attitude

Loyalty Programs

Basic Services

The Challenge. . …..

Operational Excellence Mandate for

HR

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The HRM scenario

•Sourcing•Performance Management•Compensation Practices•Training•Policies

Sourcing Quality ●More emphasis on selection of behavioral traits ●Use of innovative assessment and evaluation●Focus on potential

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•Sourcing•Performance Management•Compensation Practices•Training•Policies

●Driving Performance through “Corporate Values”●Customer Driven Measurement

The HRM scenario

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•Sourcing•Performance Management•Compensation Practices•Training•Policies

●Compensation as a performance driver

The HRM scenario

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•Sourcing•Performance Management•Compensation Practices•Training•Policies

● Training for Standardization, Consistency and Reliability●Impact on business is relatively more tangible and quick - Training Evaluation to be done at ‘Result level’.

The HRM scenario

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•Sourcing•Performance Management•Compensation Practices•Training•Policies

●Dynamic as per the business requirement●Facilitative than controlled

The HRM scenario

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Beyond 2007. .. …????

“ What will the major oil company in 2010 look like ? . . . .

. . . . Most likely it will be a highly decentralised company with each of its segments operating as autonomous entities. It will have outsourced as much as 40% of its current activities. It will have fewer employees - perhaps as little as one third of its professional staff of today.”

P.J Carroll. President, Shell Oil Company.

1995

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Discussion