Sustainable Human Resource Management
PTT recognizes and values the importance of human capital development in enhancing knowledge and competencies, as it is a key factor in driving business competitiveness towards the organization’s vision and mission. PTT focuses on building a Knowledge-based Society to build leadership and develop employees into ethical and talented professionals, under the principles of Care, Share, and Respect. In this way, employees are prepared to support PTT in caring for societies, communities, and the environment; and to drive the organization towards sustainability.
Human Resource Management
Employees play a vital role in moving the organization’s vision, mission, and strategy on the path of success. Based on this understanding, PTT has identified the following strategic objectives and approaches to manage human resources:
Sufficient leader pool to support business growth
Analyze success profiles in positions as required by businesses; develop management’s leadership skills as appropriate to both current and future position requirements; monitor results, and build robust succession plans for all important strategic positions.
Sufficient talent pool to achieve business direction
Select talent pool of capable employees, and enhance employees’ skills for future executive positions through the career management program and regular monitoring for improvements.
Highly capable workforce
Develop employees to support business expansion in core and new capabilities, which include Capable Project Management, Operation Excellence, Business Development, Marketing and Sales, Stakeholder Management, Corporate Finance, Human Resources/Organizational Excellence (HR/OE), Research & Development/Technology, and Corporate Strategy.
Highly engaged workforce
Focus on enhancing workforce engagement by analyzing engagement survey results and setting up plans, such as promoting human resources management for line managers and improving the human resource process and system in order to meet the business strategy, the diverse needs of employees.
Highly capable HR and effective service delivery
Build the capabilities of executives and HR officers to effectively respond to short- and long-term business requirements.
PTT has defined the SPIRIT values as the basis for building organizational norms and behaviors, and to support collaboration amongst PTT Group employees. These values consist of S: Synergy, P: Performance Excellence, I: Innovation, R: Responsibility for Society, I: Integrity & Ethics, and T: Trust & Respect. All 6 SPIRIT values are an important foundation that shape management and employees into talented and ethical individuals, who are responsible to the organization and society.
Structure and Management System
PTT's human resources management structure consists of:
- Human Resource Business Group Committee (HRBG) examines human resources management.
- Human Resource Committee (HRC) proposes policy and provides guidance on human resource management.
- PTT Management Committee (PTTMC) sets the human resource management policy.
- Human Resource Group Alignment and Coordination Management Committee (HRAC) manages human resource matters to align with PTT Group's strategy and direction.
- PTT Group Management Committee (PTTGMC)
- PTT Business Affairs Committee
- Human Resource and Educational Scholarship Committee focuses on international scholarships, trainings and development programs for employees below level nine to become future
PTT integrates the concept of a Learning Organization into the design of PTT’s human resource management and organization development systems, and uses information technologies in everyday operations. For example, the Systems Applications and Products (SAP), which stores employee information, and the COACH Application, which maintains employee records and information on their competencies, derived from work analyses and success profiles. The COACH Application also stores information on KPIs used for standardized employee performance assessments.
PTT’s recruitment system prioritizes internal candidates with suitable qualifications, knowledge, and experience to fill job vacancies. This internal recruitment system provides opportunities for PTT employees for promotion and to develop their potential for a diverse career path along with the sustainable business. The recruitment system reflects PTT’s awareness of work life balance and equal opportunities for all employees.
Searching outside of the current employee pool to fill open positions in PTT will start at a later point. PTT welcome external recruitment and potential candidates as it provides opportunity for a fresh outlook on the industry that a company may need to stay competitive.
PTT announces open vacancies using multiple diverse channels both domestically and overseas for recruiting potential candidates. The selection process incorporates the PTT Group core values “SPIRIT” and is in accordance with PTT’s principles that adhere to morality, ability, equality, and potential of the candidates eligible for the positions and business needs.
The Human Resource Business Unit (HRBU) works with individual business units to analyze staffing needs, identify essential skill requirements and develop acquisition plans to recruit and select capable applicants to serve business needs in a timely manner.
Furthermore, PTT utilizes the e-Recruit system to increase efficiency in managing applicant data and to support future business expansion. The system stores all types of information from the recruitment to selection processes, and similarly allows applicants to track their status during the application process.
PTT's strategies and policies to foster employees’ motivation in-term of remuneration, career path and etc. are as follows:
- Remuneration management is linked to KPI: All employees have to set targets and KPIs aligned with the business strategy.
- Annual benchmarking research of leading companies’ remuneration practices both domestically and international: The results are used for internal adjustment reflecting PTT’s performance and compensation amongst the top organizations in Thailand.
- Career path management that creates employee readiness for promotion and moving up in the organization. The individual career development plan is prepared for high performance and development of employees that ensure eligibility for internal vacancies. The promotion will be considered by the committees in a transparent and fair way.
- Rewards and complement schemes are in place for motivating employees to achieve operational excellence. Overall operational performance and international reputation reflecting efficiency of PTT’s management is enhanced. This is reflected by being included in Fortune 100 and being member of Dow Jones Sustainability Indices.
- Welfare and other benefits offered by PTT are higher than legal requirements and are tailored to suit all age ranges. Each employee is able to employee is able to select the benefit package that best suits his or her needs and situation.
- Flexible benefits to suits the different needs of employees based on age group.
- Welfare and benefits for family members, such as medical care and scholarships.
- Pre-Retirement Training Programs, such as training on senior citizen laws, the inheritance law, and healthcare for senior citizens.
- Orientation sessions for retirees to provide knowledge on different issues, such as healthcare, financial planning and management, welfare and benefits, types of tax payments, etc.
- Organizational Support Program for staff in difficult circumstances, such as those facing health issues, etc.
Performance Management System: PMS has been used in employees’ performance management process to support ongoing good performance. Management and all employee level have to set individual KPIs that align with business strategy and enhance six engagement aspects as follows:
- Product & Service
- Customer Focused
- Financial & Market
- Workforce Focused
- Process Effectiveness
After setting corporate strategy plan, PTT assesses individual and business unit performance using the COACH application at least twice a year. A mid-year performance review is conducted during the 2nd quarter, and during the 4th quarter; an annual performance assessment is carried out covering issues of planning, progress monitoring and employee development to ensure that employees can achieve their targets in line with the vision, mission, and strategy of the organization.
Individual Development Plans (IDPs) are also developed for employees in alignment with the success profile of their career paths, employees’ expectation, and business growth plans. In this way, PTT’s employees can regularly improve their skills and knowledge, and receive the necessary training and capacity development for individual career growth. The PTT performance assessment system thus effectively allows for streamlined performance measurement and monitoring between employees and their supervisors at each level.
Human Capacity Development
Career development is carried out in conjunction with knowledge management at PTT, in order to develop employee capacity and build the necessary skills to increase business competitiveness for the present and future. Career management is utilized as a mechanism for career advancement in each position, and covers the areas of employee competency, knowledge, experience, and personal attributes, to ensure that employees have a clearly defined career path and are motivated to continue pursuing individual development by specifying the individual development plans. PTT encourages its employees to apply new skills and knowledge derived from training using the principle of 10/20/70, which is closely linked to the career management system. Through this system an employee will gain 10% of knowledge and skills from a formal learning process, 20% from coaching and feedback from supervisors or mentors, and the remaining 70% from project assignment or on-the-job-training (OJT), as well as through sharing of knowledge and skills with others.
The CareerManagement System is a system used for planning employee development in terms of building capabilities, technical skills, and career growth. At the employee level, this is managed by the Career Advisor and Human Resource Committee, while the Executive level is managed by the Human Resource Group Alignment and Coordination Management Committee, and PTT Management Committee. Supervisors and employees are jointly responsible for preparing Individual Development Plans (IDPs) to ensure employee growth and career advancement.
At the employee level, this is managed by the Career Advisor and Human Resource Committee, while the Executive level is managed by the Human Resource Group Alignment and Coordination Management Committee, and PTT Management Committee. Supervisors and employees are jointly responsible for preparing Individual Development Plans (IDPs) to ensure employee growth and career advancement.
In terms of succession planning for executives and leadership, PTT divides Leadership Pools in three groups, which are supervised by the following committees:
- SEVP Pool by PTTMC
- EVP Pool by HRAC
- VP Pool by HRC
A succession plan is prepared by analyzing organizational demand for leadership within five years, following which highly competent individuals will be selected. Those selected will develop IDPs and identify target positions in order to strengthen their readiness prior to assuming a critical leadership role.
The PTT Leadership and Learning Institute (PLLI) supports leadership and employee learning further by providing scholarships for employees to pursue higher studies in their fields of interest that also correlate with organizational strategy, in addition to training courses such as Leadership Development Program, Business and People Management Program, and Functional Academy Courses, to prepare employees to meet current and future business needs.
Curriculum Structure of the PTT Leadership and Learning Institute
PTT is concerned with employees’ expectation. Hence, the annual employee engagement and satisfaction survey is part of PTT’s commitment to meet employee expectations, through both quantitative and qualitative means. The survey methods include field research, in-depth interviews with executives, meetings with employee groups on various human resource issues, including turnover rate and grievances. In 2017, PTT reviewed the PTT Engagement Model and found that the previous score was reported as an overall summary which is difficult to make a comparison in sub-details with other global leading oil & gas and consumable fuel companies. Consequently, PTT has adjusted factors from 8 to be 6 main factors and 18 sub-factors regarding to PTT context. Furthermore, the results from the engagement surveys are used to improve the organization’s human resource management each year:
PTT has a human resource management policy in place that respects human rights, labor rights and fair treatment in accordance with the UN “Protect, Respect and Remedy” Framework for Business and Human Rights 2011, the International Labor Organization (ILO), and the OECD Guidelines for Multinational Enterprises. PTT also focuses on the importance of work-life balance by promoting a high-quality work life and encouraging good occupational health and safety for employees. PTT has set clear objectives and performance indicators for the improvements of the working environment. PTT provides various communication channels within which employee have the rights to access company’s human resource management information including policy, rules and regulations, labor announcement, changes in organization, benefits, privileges, employee relationship promoting activities, crisis guideline, and other relevant information via internet, email, or being informed by managers. Moreover, PTT has a transparent complaints management mechanism with privacy protection system. PTT has also developed mitigation measures and mechanism to prevent the recurrence.
PTT offers equal opportunities to everyone regardless of their race, religion, gender, age, social status, educational background, specialization or disability status. As a result, PTT is able to build a diverse workforce that can correspond to the varied needs of the organization and its customers. PTT benefits from its staff’s diversified cultural perspectives and capacities, which serve to broaden the knowledge and perspectives of staff in the teams, and foster creativity for the benefit of PTT and wider society.
Complaints and Grievances
PTT has a transparent and systematic employee grievance management mechanism which ensures confidentiality and respects human rights, with the goal of establishing appropriate understanding among employees as well as between employees and the organization. A Grievance Resolution Committee is established to deal with incidents on a case-by-case basis, with a representative from the HR department serving as one of the committee’s members. Employees are able to file formal complaints to the human resources department of each business unit; directly to the employee relations division of the human resource department by internet or phone; through a Joint Consultant Committee (JCC) representative; or the State Enterprise Employees Union of PTT Public Company Limited.
The PTT Joint Consultant Committee is comprised of the Chief Executive Officer and 9 employer and 9 employee representatives. JCC Responsibilities include the monitoring and reporting of employees’ complaints to the State Enterprise Employees Union of PTT Public Company Limited; and monthly review of employment conditions, benefits, and complaints presented by employee representatives. These complaints will be monitored until they are resolved.
In addition, PTT has appointed consultation committees for each PTT’s operations located in different regions, such as gas separation unit at Rayong province, Khanom gas separation unit at Nakohn Ratchasima province, and natural gas pipeline contribution service center at Chonburi province. The members of the committee consist of the director of that operation site as chairman and employee representatives to co-consider on offers, requests, and complaints of every administrative and employee to maintain employees’ life quality standard in compliance with labor law and PTT’s regulation.
The Enterprise Employees Union of PTT Public Company Limited is an independent entity that plays an important role in verifying and investigating grievances with the JCC, whose responsibility is to provide an overview and ensure that the policies and guidelines are up-to-date and benefit employees. The Union’s goal is to ensure that employment conditions do not fall below the minimum standard required by laws and state enterprise requirements. PTT encourages and provides opportunities for active employee participation in the Union.
At PTT, knowledge management covers various learning aspects such as personal learning, small group learning, and community of practice for practical wisdom of organization. PTT Group KM Committee is responsible for impelling knowledge management though people process and technology management and upgrading and sharing best practices for PTT Group’s competitive excellence.
The committee will update progress of knowledge management to the PTT Group management committee every year for obtaining feedbacks, comments, and advices. The suggestions are used in implementing and supporting PTT’s employees to able apply the knowledge and further development properly.
PTT ChiefExecutive Office and Managing Director provide the policies to the KM Committee for achieving targets and advise of vision and targets that are revised at least once a year. Knowledge management is a tool for creating culture of sharing and exchanging knowledge amongst PTT Group’s employees which enable further knowledge and creativity in every department. This tool is truly about creating innovation and adding to PTT Group.