Actual and Potential Impacts of PTT's Operations

PTT has redefined its vision to "Powering Life with Future Energy and Beyond," signaling a strategic shift towards the future energy sector and expanding its business horizons beyond traditional energy sources. This strategic pivot has prompted a comprehensive reassessment of PTT's business drivers and core competencies, encompassing skills, knowledge, experience, and individual attributes across all organizational roles. This serves as a robust framework for cultivating the capabilities of executives and employees at every level while nurturing a cohesive organizational culture. It fosters a culture of continuous learning and development, prompting employees to embody desired values and behaviors, thereby enhancing both competence and ethical standards through the SPIRIT value. This strategic realignment positions PTT to drive sustainable growth and development in alignment with its future business objectives.

Amid the challenges posed by the COVID-19 pandemic, PTT has demonstrated agility by implementing adaptive operational measures. Notably, the introduction of a Work from Home policy during the pandemic's peak evolved into a Work from Anywhere policy as conditions improved, establishing a new operational norm. These adjustments are underpinned by principles of trust and respect, deeply entrenched within PTT's organizational ethos, epitomized by its SPIRIT values. Furthermore, there has been a concerted effort towards digitalizing work processes and transitioning from traditional classroom training to online and virtual formats. This seamless integration of People, Process, and Technology has bolstered operational efficiency as targeted.

Objectives/ Goals

In terms of objectives and goals, PTT's Human Resources and Organizational Development departments have set forth strategic initiatives aimed at becoming strategic business partners and fostering organizational agility in response to dynamic environments. Central to these objectives is the prioritization of employee well-being and satisfaction, facilitating the delivery of high-quality, efficient services. This strategic imperative hinges on three key drivers: maximizing employee potential, optimizing operational processes, and leveraging cutting-edge technology across operations. By pursuing these objectives, PTT endeavors to maintain a competitive edge in both present and future landscapes. Notably, the HR department has devised comprehensive strategies and action plans for human resource management and organizational development in 2023, anchored in the 4R's strategy: Recruit, Retain, Retrain, and Redesign.

Determination of Strategic Goals and Operational Guidelines

Management Approach

PTT's Human Resource Management Policy

Although the COVID-19 pandemic has eased in 2023, PTT continues to prioritize the safety of its employees and their families. It maintains policies to help alleviate the financial burden of COVID-19 testing expenses, should employees require testing before seeking medical treatment. Additionally, PTT continues to collaborate with network hospitals to facilitate COVID-19 vaccinations for employees and their families. Moreover, to strengthen organizational management and focus on capacity and capability readiness, PTT aims to ensure sufficient and knowledgeable employees to execute business operations aligned with the vision. It emphasizes organizational commitment and, in 2023, the HR Department initiated projects to manage PTT's human resources, such as developing leadership to serve as role models and promoting various academies within PTT, especially in new businesses, to enhance courses that align with development guidelines, elevating organizational and employee capabilities. There are also improvements in managing the potential staff group at PTT, both in terms of development and performance management, to attract and retain talented employees.

Furthermore, the CEO and top management, including presidents and vice presidents, conduct strategic communication sessions, vision sharing, and regular interactions with employees at least once a year in a Hybrid Town Hall format (online and onsite), aligning with the New Normal work environment post the COVID-19 pandemic in 2023. They also engage with remote employees to communicate organizational directions and motivations, fostering a sense of importance among employees. Additionally, the CEO and top management engage with potential staff members to provide insight into business strategies and opportunities for staff to inquire about operational concepts, serving as role models and encouraging employees' significant contribution to PTT's sustainable business growth.

Structure for Human ResourceHR Governance

PTT's human resource management structure comprises various relevant committees, including:

Human Resource Management Process 

PTT places significant emphasis on investing in the development of all employees, acknowledging that individuals with potential, determination, skill sets, and a strong commitment to the organization are pivotal in propelling business success and realizing the Company's vision and mission. PTT prioritizes the establishment of a knowledge-centric culture, fostering leadership opportunities, and nurturing employees at all levels to embody virtues, professionalism, and a perpetual readiness to learn throughout their careers. Furthermore, PTT encourages employees to make meaningful contributions to society and the environment while steering the organization towards sustainable growth.

Employee Recruitment

PTT actively seeks out individuals with potential to join as key contributors in shaping and fortifying a resilient and sustainable organization. This involves a focus on career progression, fostering innovation, and leveraging digital technologies to adapt to evolving landscapes in line with PTT's forward-looking vision of "Powering Life with Future Energy and Beyond." Human resource management endeavors to facilitate the continual growth of employee capabilities in harmony with the organization's trajectory, striving to maintain a healthy balance between personal life and work responsibilities and ensuring equal employment opportunities.

PTT implements a structured recruitment and selection process, disseminating job openings through various channels that resonate with prospective candidates and resonate with PTT's overarching vision. These channels include PTT's dedicated job application website, online platforms for job seekers, and the Line Official Account "@PTT Career." Moreover, PTT collaborates with universities, professors, students, and scholars through annual engagements and initiatives to share insights into work experiences and deepen understanding of PTT's operations. Additionally, PTT establishes partnerships with private sector entities associated with Thai students studying abroad, a demographic targeted for potential recruitment. Human resource departments collaborate closely with business units to assess needs, delineate job requirements, and define qualifications to attract candidates who align with the organization's ethos and objectives. Furthermore, PTT takes into account candidates' current residences in areas where PTT operates, as well as their willingness to work in specific locations or provinces based on family considerations, fostering enduring working relationships. This approach also supports localized recruitment initiatives.

Promoting Diversity

PTT places a high value on fostering and preserving diversity within its workforce, considering factors such as ethnicity, religion, gender, age, social class, geographic origin, education, field of study, and political beliefs. It does not restrict opportunities based on disabilities or age. This inclusive approach is designed to ensure that the workforce reflects the necessary diversity to meet job requirements and cater to the needs and differences of customers, as well as the diverse business landscape both domestically and internationally. By embracing diversity, PTT encourages the exchange of ideas, cultures, perspectives, and experiences, fostering creative thinking and innovation that benefit the organization and society as a whole. Additionally, PTT emphasizes the importance of raising awareness of human rights, respecting diversity in the workplace, and promoting ethical conduct in business operations. This is achieved through comprehensive training programs delivered in various formats, including classroom training and e-learning. These programs cover topics such as Good Corporate Governance and Anti-Corruption (CG e-learning), Human Rights, Innovation Leadership and Diversity Management, and Workforce Diversity Generation Management, and are provided to all employees and managers.

PTT sets clear standards of behavior and actions that constitute disciplinary offenses, which are publicly announced to ensure employee compliance. In cases of non-compliance, immediate supervisors issue warnings, and more serious infractions result in disciplinary action. Employees will face disciplinary action tailored to the specific nature of the offense, fitting the circumstances of each case accordingly.

Employees are encouraged to report any unfair work-related issues or inappropriate practices through multiple channels, including addressing written complaints to the accused employee's supervisor, with the option for complainants to remain anonymous. Alternatively, complaints can be submitted through the labor relations complaint system on the PTT intranet. This proactive approach enables the organization to address issues before they escalate, fostering a positive relationship between the organization and its employees.

Actions or behaviors that involve segregation, discrimination, or sexual harassment, or those are unrelated to gender, or the denial of any gender-related benefits, whether direct or indirect, without justifiable reasons, are considered disciplinary offenses. This applies regardless of a person's gender, expression of gender identity, or differences in birthplace, ethnicity, religion, language, age, disability, or physical or mental health condition (Clause 3.8 of HR Standards, Chapter 20, Standards of Conduct and Disciplinary Offenses). Offenders are subject to disciplinary action according to the nature of the offense (Clause 3 of HR Standards, Chapter 20, Standards of Conduct and Disciplinary Offenses), in accordance with PTT's disciplinary guidelines. Such actions are considered moderate offenses and may result in withholding salary increases for up to six months in the following year (Clause 2 of the attached table, Practice Guidelines for Disciplinary Penalty Consideration and Penalty Reduction Consideration).

Employee Rights

PTT upholds a sustainable human resource management policy that honors the rights of its workers, encompassing those safeguarded by law and fundamental human rights within the employer-employee relationship across all facets of employment. The Company actively advocates for and facilitates the exercise of these rights, ensuring equitable treatment aligned with global standards such as the United Nations "Protect, Respect and Remedy" Framework for Business and Human Rights, conventions established by the International Labor Organization, and the guidelines outlined by the Organization for Economic Co-operation and Development (OECD) for multinational enterprises, etc. Furthermore, PTT places significant emphasis on fostering a harmonious work-life balance by nurturing a superior quality of work environment characterized by stability, safety, and well-being. To enhance various aspects of the workplace, the Company sets clear objectives and performance indicators. PTT ensures comprehensive access to information on organizational human resource management through a diverse array of communication channels, including policy details, regulations, and guidelines, updates on labor relations, internal organizational changes, employee benefits and entitlements, initiatives for employee engagement, crisis management protocols, and other relevant updates. This information can be accessed through internal announcements, the internet, email, and communications from supervisors and department heads. Moreover, transparent processes are in place to handle complaints and grievances, providing employees with channels to express concerns freely. Communication ensures that individuals lodging complaints or grievances are safeguarded, with no adverse effects on their job performance or safety. Additionally, the organization implements preventive measures to avert recurrence of issues.

PTT actively encourages employee engagement in the State Enterprise Labor Union of PTT Public Company Limited ("PTT Labor Union"). The union is dedicated to nurturing positive relationships between employees and employers, addressing grievances, safeguarding employment-related benefits, fostering operational efficiency, and upholding the interests of the state enterprise. PTT extends support to the PTT Labor Union through various means, including the Corporate Affairs Committee, which collaborates to advance the welfare of all PTT Labor Union members. Importantly, PTT refrains from implementing policies that impede employees from joining the PTT Labor Union, firmly rejecting coercion, intimidation, retaliation, or any form of violence in such matters.

Living Wage^{GRI202-1,GRI401-2}

When determining employee compensation, PTT prioritizes providing a living wage that sufficiently covers the essential needs of both employees and their families, allowing them to maintain a dignified standard of living while also having the opportunity to save. PTT conducts regular reviews of employee compensation and has established procedures to gather feedback from employees through the State Enterprise Labor Union of PTT Public Company Limited ("PTT Labor Union"). The Corporate Affairs Committee of PTT Public Company Limited oversees employee complaints, claims, or expectations through monthly meetings, with comprehensive reports distributed to all employees afterward. Additionally, PTT integrates insights from annual employee engagement surveys into its compensation adjustment deliberations. PTT's compensation framework encompasses various components:

1. Salary

PTT sets salary levels at a standard that ensures employees and their families can sustain themselves adequately, fostering a dignified lifestyle with room for savings. These salary levels are compared against those of leading businesses in the same sector, namely oil & gas companies in Thailand. The salary structures for different job levels are tailored to reflect the diverse responsibilities of employees. Annually, PTT evaluates the total compensation of its employees against industry benchmarks and proposes adjustments to the respective PTT committees to maintain fairness. Salaries are disbursed monthly by the 28th day of each month, with annual reviews based on the Company's performance and achievements during the year. Salary increments are approved by the Board of Directors of PTT Public Company Limited, considering factors like company performance, inflation rates, market survey data on bonuses offered by comparable firms in the Oil & Gas industry, which impact the adjustment of employees' cost of living. Minimum salary increments exceed inflation rates to enhance employees' purchasing power annually. Furthermore, employees receive salary boosts throughout the year upon promotion to higher positions, reflecting their increased responsibilities and roles.

2. Welfare and Benefits

In addition to salaries, PTT provides a comprehensive range of welfare benefits aimed at enhancing the stability of employees' livelihoods, particularly for those who may struggle to meet essential needs solely on their salaries or lack sufficient government assistance. These benefits are carefully crafted to address basic human necessities and are benchmarked against industry leaders in the Oil & Gas sector and similar fields. Among the welfare benefits offered to PTT employees are: Benefits related to healthcare, encompassing health insurance coverage and medical benefits provided by PTT Public Company Limited (PTT) hospitals, offering employees and their families access to services without any cost. Additionally, PTT provides loans to help alleviate financial burdens, as well as annual health check-ups and essential vaccinations. PTT supports employees in building savings for emergencies and ensuring a high quality of life after retirement through the establishment of a pension reserve fund. Employees have the flexibility to choose from a range of investment plans based on their preferences. Furthermore, agreements have been established with savings cooperatives to offer additional financial services, including deposit and loan services tailored to the needs of employees. Employees who work regularly in provinces where they do not reside permanently will receive an additional allowance for assignments outside their home province to cover the challenges and expenses associated with relocation and accommodation. This allowance also addresses the daily cost of living or the inconvenience of being away from their families. PTT offers accommodation for its employees in specific areas. In locations where PTT does not provide housing, employees will receive a housing allowance adequate for arranging their own accommodation. For employees required to work offshore, they receive additional assistance to address the unique challenges of such assignments. Similarly, for those regularly working abroad, PTT offers customized benefits and privileges tailored to the specific conditions of each country, including factors like geography, climate, society, and cost of living. This comprehensive support ensures that employees and their families can maintain a high quality of life wherever they are stationed. These benefits encompass a cost-of-living adjustment index (COLA Index) to ensure employees have adequate financial resources to cover expenses in their host countries. Moreover, there are provisions for suitable housing allowances, accounting for accommodation costs in urban areas and accommodating families with spouses and children. Additionally, allowances for public utility expenses are provided to alleviate any disparities in utility costs between foreign countries and Thailand, along with support for children's education expenses. All benefit rates and privileges are meticulously determined through surveys conducted by leading global consultants. This process guarantees that they remain internationally competitive and comparable to those offered by top businesses in each respective country, thereby meeting the needs of PTT's employees worldwide.

Furthermore, PTT offers extra remuneration for tasks performed beyond standard obligations, including overtime pay for work conducted outside regular hours, holiday pay for those on duty during holidays, and shift differentials for continuous or scheduled work that, if disrupted, could affect operations. Moreover, additional compensation is allotted for offshore assignments to incentivize and support employees operating in hazardous environments and dealing with daily challenges. Standby pay is extended to employees tasked with maintenance or specific duties necessitating readiness onsite or at the workplace to promptly address issues or emergencies. This serves as motivation for employees handling specialized roles and as compensation for the sacrifice of regular leisure time on customary days off.

3. Bonuses

PTT incentivizes and acknowledges employee commitment by disbursing bonuses tied to the Company's annual performance, subject to approval by the PTT Board. Acknowledging individual contributions, certain employee cohorts receive variable bonus rates reflecting their distinct performance levels, fostering a culture of meritocracy.

Motivational Strategies^{GRI202-1,GRI404-2}

PTT employs a range of strategies and policies to inspire its workforce, covering diverse areas such as compensation, career advancement, and more, as follows:

• With respect to appointment and Promotion Criteria, PTT ensures that employees demonstrating potential and exceptional performance are afforded advancement opportunities based on merit, following standardized criteria.
• The salary adjustment policy upon employee promotion is aligned with industry standards, ensuring that over the long term, employees' salaries remain competitive within the market and fair for those with experience, enhanced expertise, or increased responsibilities.
• A performance-based compensation management system is implemented, mandating employees at every level to establish personal objectives and performance metrics that align with the Company's goals and strategies. This approach ensures fairness and inclusivity by acknowledging the diverse job performances of employees without bias.
• Annually, there is a systematic examination, benchmarking, and refinement of compensation management practices against leading companies, both locally and globally. This practice is a reflection of the company's performance, ensuring that compensation remains competitively positioned nationally and internationally, in line with actual operational achievements.
• A career development plan is in place for employees, tailored to prepare them for advancement to higher positions. This plan is individually customized for each employee. Those demonstrating exceptional performance and growth potential in their roles will be transparently and equitably reviewed for promotion by a respective committee.
• Working hours are adjusted to accommodate flexible schedules, empowering employees to effectively manage their workloads while fostering a healthy work-life balance. Moreover, established guidelines support employees in working remotely from diverse locations beyond the office premises (Work from Anywhere).
• A wide range of welfare and benefits are offered, surpassing legal obligations, with designs tailored to suit and inclusively cater to employees of all age groups. These provisions span every phase of an employee's life, with individuals having the autonomy to choose benefits that align with their preferences. Examples include alternative benefits and personalized healthcare coverage for family members.

• Pregnant employees are eligible for maternity leave, during which they receive their salary at the applicable rate for up to 90 days. Additionally, they are entitled to further leave following childbirth for up to 150 consecutive days without salary.
•  Employees seeking leave to assist their spouse with childbirth, in compliance with legal provisions, are entitled to receive their salary at the applicable rate for up to 15 working days.
• Allocate breastfeeding facilities at PTT medical centers, accessible to employees from 08.00 am to 05.00 pm.

Performance Evaluation

PTT employs a Performance Management System (PMS) to efficiently assess employee performance, striving for continuous operational excellence. Both management and employees are required to define individual performance metrics aligned with the organization's five objectives, which include:

• Resilience
• Reenergize
• Reimagination
• Reform
• Business as usual

Incorporating alignment with all 6 dimensions of the balanced scorecard perspectives, which are:

• Product & Service Outcomes
• Customer-Focused Outcomes
• Financial & Market Outcomes
• Workforce-Focused Outcomes
• Process Effectiveness Outcomes
• Leadership Outcomes

In addition to organizational strategic planning, PTT establishes strategic-level Key Performance Indicators (KPIs) that are then cascaded down to operational levels. These KPIs are comprehensive across the organization and are further refined into departmental-level indicators, ensuring alignment with objectives and goals. Individual performance indicators are closely tied to employees' assigned responsibilities within their units, including any additional tasks such as involvement in cross-functional project teams. Both collaborative teamwork-based KPIs and individual KPIs are utilized. Employees set their individual KPIs through the Performance Management System/Career Management System (COACH), subject to hierarchical approval, with performance tracking conducted at least twice a year. Biannual progress tracking occurs in the second quarter, and annual performance assessment takes place in the fourth quarter through the Two-Way process. This process entails ongoing, agile conversations between supervisors and employees throughout the year, covering various aspects like planning, progress tracking, collaborative problem-solving, overcoming challenges, and skill development. These dialogues aim to empower employees to achieve personal, departmental, and organizational objectives, aligning with PTT's vision, mission, values, and strategies. The approach follows the Management by Objective methodology and incorporates multidimensional performance appraisal. In 2022, all PTT employees participated in Two-Way conversations, representing 100% engagement across the entire workforce.

Employee Skill Development^GRI404-2 

PTT is committed to fostering the acquisition of knowledge and skills crucial to the organization's strategic direction, thereby bolstering competitiveness in both the current landscape and future endeavors. Achieving this objective is facilitated through robust career management practices and the promotion of mutual knowledge exchange. Career management serves as a structured mechanism for propelling career advancement, anchored in competencies, knowledge, experience, and personal attributes. This framework provides employees with clear career trajectories, instilling a sense of purpose and driving self-directed development. Individual development plans at PTT adhere to the 10/20/70 principle, wherein employees acquire knowledge and skills through training sessions (10%), receive guidance and mentorship from supervisors or senior colleagues (20%), and then apply this knowledge in their roles or share it with others (70%).

At the core of PTT's approach lies a comprehensive career management system, strategically designed to chart employee growth trajectories based on their potential, capabilities, and career aspirations. Oversight of employee progression is facilitated by dedicated career advisory groups, with executive-level management oversight provided by the Human Resources Management Committee of PTT Public Company Limited. Managers receive guidance and support from both the Human Resources Management Committee and the PTT Management Committee, collaboratively crafting individualized development plans to bolster employee competencies and prepare them for future career milestones.

PTT has established a structured process for planning and succession in executive and leadership roles, which involves identifying and grooming potential candidates for executive positions (SEVP Pool, EVP Pool, and VP Pool) as well as for employee positions (DM Pool). This process is overseen by the following committees:

• Senior Executive Vice President Preparation Group (SEVP Pool), supervised by the Human Resources Management Committee of PTT Public Company Limited (PTT).
• Executive Vice President Preparation Group (EVP Pool), supervised by the Human Resources Management Committee of PTT Public Company Limited (PTT).
• Vice President Preparation Group (VP Pool), supervised by the standing professional advisory group.
• Department Manager Preparation Group (DM Pool), supervised by the standing professional advisory group.

PTT conducts an analysis of organizational needs within a 5-year timeframe and identifies highly potential employees. It formulates individual development plans and establishes target positions to prepare employees for assuming the key roles. Moreover, it offers scholarships to employees interested in pursuing further studies in fields aligned with the organization's direction.

PTT prioritizes the development of employees across all levels through the PTT Leadership and Learning Institute (PLLI). The PLLI focuses on fostering leadership growth and employee learning through its core offerings, which include the Leadership Development Program and Core Program. Furthermore, it delivers specialized skill development training via Functional Programs tailored to meet the present and future needs of the organization. Employing a comprehensive approach, PLLI integrates various learning methods aligned with adult learning principles. This strategy creates an environment conducive to learning and facilitates the exchange of experiences, including intergenerational learning, hands-on training, and case studies. Moreover, PLLI harnesses digital tools to enable continuous learning beyond traditional classroom settings. In 2023, PLLI conducted employee and leadership development initiatives for PTT and its subsidiaries using a Hybrid Learning model. This approach, customized to meet specific group objectives, blends diverse learning techniques such as Classroom, Virtual Classroom, Online Learning, and Field Trips. This adaptability ensures highly effective learning experiences capable of responding to evolving circumstances. The institute enriches learning through Experiential Learning activities like Role Play, Simulation, and Board Games, etc., providing engaging and insightful experiences. Additionally, PLLI develops digital learning resources on the Learning Management System (LMS) to cater to the learning needs and requirements of employees across different generations. To cater to the Anywhere, Anytime and Life-Long learning needs of employees, PTT offers a diverse range of e-learning opportunities. These encompass courses covering organizational knowledge, regulations, policies, and guidelines, sourced from both internal and external channels. The online learning platform features an extensive array of subjects, including Business, Technology, Soft Skills, Lifestyle, and more, boasting a selection of over 300 courses. Moreover, PTT grants access to the PTT E-Library, which includes e-books, e-magazines, print magazines, and physical books, enabling employees to search, reserve, borrow, and return materials, and access online publications at their convenience. Additionally, employees have access to podcasts as an alternative avenue for self-improvement, offering diverse content from both internal and external sources. PTT also introduces a novel learning format known as Casual Learning, characterized by brief, enjoyable, and easily comprehensible learning experiences, further enhancing the learning journey for employees.

Furthermore, there has been the development of the Playlist feature within the Learning Management System (LMS), which organizes courses into groups, simplifying the search process. This empowers supervisors and employees to choose course categories aligned with New Core Competencies and diverse skill topics of interest. Moreover, customized Playlists tailored to the specific needs of each department have been introduced to facilitate the creation of Individual Development Plans (IDPs) for both supervisors and subordinates.

The Curriculum Structure of the PTT Leadership and Learning Institute

Covering the professional growth of employees across all levels, from fresh recruits to top-level executives, the courses are segmented into three primary categories:

1. Leadership Development Program: This initiative is tailored to groom and expedite the advancement of potential managerial talent by endowing them with proficiencies and insights in both personnel and task management. It entails collaborative learning endeavors with distinguished speakers, as well as knowledge exchange sessions with senior executives, both internally and externally. Participation in this program is reserved for managers identified as prospective talents based on predefined organizational benchmarks.
2. Core/Functional Program (Mandatory courses for employees of all levels): This program is geared towards honing the competencies of employees across all echelons, aligned with their respective job clusters or career trajectories. It is subdivided into Compulsory, Direction/Assignment, Essential, and Functional Programs.
3. Elective Program: This program presents supplementary courses to cater to individual requirements, with inputs solicited from both supervisors and employees to tailor the curriculum to the specific needs of the workforce.

• In 2023, notable strides were made in employee development through the Leadership Development Program. For example, the LDP1 course, catering to employees in the VP Pool cohort, concentrated on cultivating proficiencies in Entrepreneurship, Strategic Direction, Business Acumen, Analysis & Decision Making, Delegation, and Empowerment. Learning experiences were enriched through hands-on methodologies, supplemented by networking activities. Notably, 25 employees were promoted to the VP level during the past year, successfully filling all vacant positions.
• Furthermore, the Young People to Globalize (YP2G) project, most recently represented by Batch 9 in 2023, aimed to equip employees with the acumen to navigate challenging tasks. Moreover, there are pivotal new projects within PTT that entail strategic significance. YP2G employees are entrusted with managing assignments across four core functions: Strategy & Planning, Business Development, Commercial & Marketing, and Engineering & Operation. This hands-on involvement allows employees to enrich their skills and knowledge through On-the-Job Training (OJT) while actively participating in real-world tasks. As evidenced by the outcomes of the previous year, in 2023, program participants were deployed to contribute to emerging business sectors or PTT's new S-curves, with a total of 7 individuals involved.

Employee Development Programs

• In 2023, notable strides were made in employee development through the Leadership Development Program. For example, the LDP1 course, catering to employees in the VP Pool cohort, concentrated on cultivating proficiencies in Entrepreneurship, Strategic Direction, Business Acumen, Analysis & Decision Making, Delegation, and Empowerment. Learning experiences were enriched through hands-on methodologies, supplemented by networking activities. Notably, 25 employees were promoted to the VP level during the past year, successfully filling all vacant positions.
• Furthermore, the Young People to Globalize (YP2G) project, most recently represented by Batch 9 in 2023, aimed to equip employees with the acumen to navigate challenging tasks. Moreover, there are pivotal new projects within PTT that entail strategic significance. YP2G employees are entrusted with managing assignments across four core functions: Strategy & Planning, Business Development, Commercial & Marketing, and Engineering & Operation. This hands-on involvement allows employees to enrich their skills and knowledge through On-the-Job Training (OJT) while actively participating in real-world tasks. As evidenced by the outcomes of the previous year, in 2023, program participants were deployed to contribute to emerging business sectors or PTT's new S-curves, with a total of 7 individuals involved.

Knowledge Management

At PTT, knowledge management encompasses both individual and collective learning experiences, spanning community-based knowledge sharing and organizational-wide learning initiatives. This comprehensive approach fosters the evolution of PTT into a learning organization, facilitated by the Values Collaboration and Knowledge Management Committee. This committee drives knowledge management initiatives through a tripartite focus on processes, people, and technology, thereby elevating and disseminating best practices to enhance collective capabilities and excellence within PTT's competitive domain. In this regard, the Values Collaboration and Knowledge Management Committee of PTT will provide updates on the progress of knowledge management to the PTT Group Management Committee as required.

The Chief Executive Officer and President PTT has tasked the Values Collaboration and Knowledge Management Committee of the PTT Group with setting directions and policies to achieve organizational goals. This includes a review of the vision and objectives within the organizational learning framework, at least once a year. The objective is to transform knowledge management into a catalyst for cultivating a culture of knowledge sharing and exchange among PTT group employees. This initiative aims to empower employees to translate their knowledge into innovative ideas across all departments. The primary focus is on nurturing innovation that generates value and/or added value for the PTT Group. Knowledge management is executed through three primary mechanisms:

• Process: Developing knowledge management systems aimed at streamlining the exchange, storage, application, and progression of knowledge within the organization. This initiative also involves advocating for the adoption of digital technologies to prepare us for future transformations and ensure we meet the expectations of all stakeholders.
• People: Enhancing the development of personnel, fostering a culture of continuous learning and self-improvement among the workforce.
• Technology: Supporting the utilization of information technology for efficient and timely data storage and retrieval, thereby improving access to knowledge. This includes the modernization of our knowledge management system, known as KM SPACE, to enhance user experience and better serve their needs.

In this regard, in 2023, all three operational mechanisms were actively engaged as follows:

Core Values

Determination of PTT Group Core Values 

PTT has introduced the SPIRIT values to foster a collaborative culture and unified working approach within the PTT Group. The SPIRIT values consist of: S for Synergy, P for Performance Excellence, I for Innovation, R for Responsibility for Society, I for Integrity & Ethics, and T for Trust & Respect. These six SPIRIT values serve as foundational principles that mold PTT executives and employees into competent, ethical, and accountable individuals, benefiting both the organization and society as a whole.

These principles will propel the organization towards its new vision, "Powering Life with Future Energy and Beyond," and address forthcoming challenges. They are aimed at empowering PTT employees to lead Thailand's transition to a new era, guided by the SPIRIT values:

• Synergy: Embracing collaborative efforts, emphasizing knowledge exchange among employees, and nurturing cooperation within and beyond the organization.
• Performance Excellence: Pursuing excellence, ensuring employees adapt swiftly to change, commit to exceeding expectations, and deliver maximum value to stakeholders.
• Innovation: Cultivating growth through innovation, fostering positive attitudes, encouraging the pursuit of new ideas, creative thinking, the application of digital technologies for enhanced efficiency, and continuous learning and development.
• Responsibility for Society: Making societal and environmental impact, prompting employees to work with awareness of stakeholder consequences to achieve sustainable development, develop environmentally conscious businesses, and embrace a spirit of volunteerism for the greater good.
• Integrity & Ethics: Fostering a culture of integrity, ensuring transparency, honesty, and integrity in all employee actions, and embodying the organization's values with virtuous conduct.
• Trust & Respect: Building trust and confidence, encouraging employees to cultivate trust and confidence in collaborative work, creating opportunities, trusting in the potential and capabilities of others, fostering open-mindedness, and respecting diversity.

Employee Engagement

PTT conducts comprehensive annual assessments to pinpoint the primary drivers affecting employee commitment and satisfaction, employing both quantitative metrics and qualitative insights. These assessments entail gathering field data, convening subgroup sessions with employees, and conducting surveys focused on gauging employee commitment and satisfaction. The overarching objective is to grasp the diverse needs and expectations across different employee groups and leverage survey findings to fine-tune strategies aimed at nurturing commitment and satisfaction, thereby directly influencing key business outcomes.

In 2023, PTT underwent a thorough evaluation of its Employee Engagement Model, integrating supplementary inquiries related to the Employee Value Proposition (EVP). These inquiries were crafted to gauge satisfaction levels concerning the Diverse Opportunities available within PTT and the Positive Impact it has. The questions delved into avenues for employees to assume varied roles aligned with their interests, as well as opportunities to contribute to projects or initiatives perceived by employees as elevating quality of life, fostering societal progress, conserving the environment, shaping the nation and the future.

Complaints and Grievances

PTT has established transparent and equitable mechanisms for addressing employee complaints. The Company's policies and procedures delineate clear processes, definitions, and delineations of responsibilities for relevant units. Upholding confidentiality and respecting human rights are paramount. Employees at all hierarchical levels receive thorough communication to ensure confidence in the protection of complainants and grievants, assuring that their actions do not adversely affect their work or safety. The emphasis lies on fostering mutual understanding among employees and between employees and the organization. Tailored investigation committees, comprising representatives from internal audit, legal, compliance, corporate governance functions, and HR, are formed for case-specific inquiries. Additionally, PTT offers avenues for lodging free and independent complaints and grievances. These channels include direct communication with the accused party's chain of command, HR departments of respective business units, the labor relations complaint system, the corporate relations committee, the Joint Consultation Committee (JCC), and the State Enterprise Workers' Union of PTT Public Company Limited (PTT Labor Union).

Key Performance Indicators and Significant Achievements

Human Resource Management Outcomes

The effectiveness of human resources management at PTT is demonstrated through the Human Resources Cost Efficiency Index, which highlights the organization's proficiency in managing human resources for maximum productivity. This index encompasses three key dimensions:

1. Enhancing employee skills and capabilities
2. Fostering employee engagement and loyalty to the organization
3. Providing avenues for on-the-job learning and diverse work experiences

Human Capital Index (HCI) (%) 

Employee Recruitment Progress

In 2018, PTT overhauled its E-recruit system, elevating its functions from merely managing applicant data to facilitating contract finalization. This upgrade streamlined recruitment and selection processes, empowering better data analysis and process refinement. Moreover, the onboarding program underwent enhancements, ensuring swift assimilation of new hires into the organizational ethos and fulfillment of job expectations, perfectly aligned with PTT's operational requisites.

In 2019, PTT continued refining the E-recruit system for enhanced efficiency, guided by user feedback, resulting in increased flexibility and seamless integration with the applicant database. Notably, a PTT game-based aptitude test was introduced in July 2019, comprehensively assessing candidates' cognitive, potential, and technological proficiencies.

In 2020, a vigilant monitoring and improvement scheme was implemented for the testing system, with a focus on enhancing result transparency, establishing a comprehensive data repository, and refining operational protocols for the team.

In 2021, PTT diversified its recruitment channels, catering to the preferences of the new generation of applicants, while remaining aligned with PTT's strategic vision, to attract a diverse range of candidates possessing the qualifications that the organization seeks. These channels included the PTT job application website, online platforms, and the Line Official Account. Furthermore, strategic partnerships with various universities were forged, facilitating lectures, knowledge exchanges, and insights into employee experiences, fostering a deeper understanding of PTT's operations and preparing candidates for the application process. The job application website (www.pttplc.com) was revamped to enhance user accessibility, ensuring compliance with the Personal Data Protection Act (PDPA).

In 2022, PTT undertook initiatives to broaden its recruitment outreach, forge partnerships with domestic and international organizations and institutions, and facilitate the exchange of knowledge and best practices in recruitment and selection processes to identify potential candidates who resonate with the organization's strategic objectives. Among these initiatives was the Network Recruitment Partnership, which aimed to establish collaborations with professional associations and student groups both locally and globally. Additionally, the University Networking initiative was launched to cultivate relationships with diverse universities. This included hosting specialized lectures for students covering organizational insights, job application preparation, alumni guidance on resume writing and interview readiness, all aimed at bolstering brand recognition and stimulating interest among students to apply for positions at PTT. Moreover, internship programs were offered biannually, during both the cooperative education semester and the summer semester, providing students with opportunities to acquire practical experience and knowledge in real-world settings. PTT also fostered academic partnerships with various universities through the signing of Memorandums of Understanding (MOUs), thereby enhancing collaboration in academic endeavors. Furthermore, PTT extended its recruitment efforts to local communities, such as Rayong, Chonburi, and Nakhon Si Thammarat, by hiring employees and welcoming interns to engage in hands-on learning experiences within units aligned with PTT's business operations.

In 2023, as the COVID-19 pandemic situation began to ease, PTT broadened its recruitment strategies by actively engaging with organizations and educational institutions both locally and globally. This involved fostering partnerships and expanding networks with universities and student associations abroad, including those in the United Kingdom and the People's Republic of China. The goal was to disseminate information about the Company, its operations, and job vacancies, thus enhancing brand recognition among educational institutions and student communities and generating more interest in applying for positions at PTT. Moreover, PTT made improvements to its online job application platforms to offer applicants a more streamlined and efficient experience. Additionally, in its recruitment and internship programs, PTT considered stakeholders from various sectors and took into account the locations of applicants and students, aiming to place them in areas close to PTT's operational sites where job opportunities were available. This initiative aimed to create employment opportunities for local residents living in proximity to PTT's facilities.

Voluntary Employee Turnover  Rate by Gender (%)

Voluntary Employee Turnover Rate  by Age (%)

Diversity Results

Percentage of Female Workforce (Percentage)

The gender-based average compensation ratio for 2023^{GRI202-1, GRI405-2}

Local Employment^GRI202-2

Results of Motivational Initiatives
The specifics of the motivational activities carried out in 2023 are as follows:

Performance Assessment 

All employees are mandated to undergo annual performance evaluations, during which individual performance metrics are established. These assessments are tailored to correspond with the unit's objectives and the organization's overarching goals aimed at fostering success. PTT requires supervisors to monitor employee performance at least biannually, maintaining open communication channels to track progress and offer support, thereby ensuring alignment with established plans and objectives. Through these evaluations, employees' performance is guided to align with predetermined goals and strategies.

Employee Development Outcomes

Every employee undergoes assessment, establishes job expectations, and crafts individual development plans to pursue opportunities for progression. These plans encompass training (10%), job coaching (20%), and practical work experience (70%), structured by the PTT Leadership and Learning Institute (PLLI). The PLLI curriculum is meticulously crafted to bolster the competencies of employees across all tiers, spanning from entry-level to managerial roles. It offers a spectrum of courses including new employee orientation, foundational modules, and preparatory programs for prospective managers, programs conducted in alignment with the organization's policy direction. In 2023, all executives and employees within PTT's potential talent pool, scoring 100%, have had individual development plans established. This process is integral to career management, designed to equip individuals with the skills and readiness for progression to higher levels. Through strategic managerial development planning, the organization ensures a sufficient number of managers to fulfill its operational requirements.

Organizational Engagement Results

PTT has established corporate Key Performance Indicators (KPIs) to measure employee engagement and satisfaction, ensuring alignment across all management levels. Diligent efforts are invested in crafting improvement strategies and closely monitoring departmental progress.

In 2022, the organizational engagement score reached 79%, reflecting a marginal 1% decrease. A meticulous examination reveals that the engagement score for 2022 differed from that of 2021 by only 0.2%. Moreover, PTT's organizational engagement score surpasses that of leading oil and gas companies in the Asia-Pacific region, which stands at 74%.

Complaints and Grievance

PTT offers multiple avenues for employees to address concerns related to their work environment or unfair treatment. These grievances can be resolved through designated channels, including submitting written complaints to the supervisor of the accused individual (with the option of remaining anonymous) or utilizing the labor relations complaint system available on the PTT Intranet. By providing these channels, PTT ensures that all concerns are duly evaluated and addressed, fostering positive relationships between the organization and its employees.

Furthermore, PTT establishes procedures for employees to report grievances if they believe their supervisors have abused their authority or deviated from established procedures, regulations, or instructions. Such grievances can be escalated for discussion with the relevant supervisors, in hierarchical order, to seek resolution.

In this aspect, PTT strictly adheres to and complies with labor laws, as well as the organization's regulations and requirements. PTT's HR regulations, provisions, announcements, and practices are fully aligned with labor laws, thus averting labor disputes and nurturing positive relationships within the organization.

PTT took disciplinary measures against the employee involved after conducting a thorough investigation and disciplinary proceedings for breaching business ethics, stemming from non-compliance, circumvention, violation, or disregard of policies, laws, regulations, directives, and lawful instructions from supervisors, regardless of whether PTT incurred damages. The Company conducted comprehensive investigations, inquiries, and imposed sanctions in line with the regulations governing personnel management.

In this regard, in 2022, there were no reported incidents of internal data misuse, conflicts of interest, or instances of corruption and collusion.

Number of employees committing disciplinary offenses (Cases)

	2023
Number of employees investigated/completed investigation for disciplinary offenses:	11
Violation of rules and regulations	7
Misconduct	1
Breach of privacy	0
Bribery	0
Discrimination	0
Sexual harassment	0
Harassment	0
Others	3
Penalties:	11
Warning	9
Withholding salary increase for the following year	1
Suspension without pay and withholding salary increase for the following yea	0
Termination with severance pay	0
Termination without severance pay	1

Money laundering or insider trading (Cases)

Year	2020	2021	2022	2023
Target	0	0	0	0
Cases	0	0	0	0

Conflict of interest (Cases)

Year	2020	2021	2022	2023
Target	0	0	0	0
Cases	0	0	0	0

Results of Organizational Values Commitmentร

To ensure the alignment of organizational operations with the SPIRIT values and the attainment of the Company’s objectives, in line with the PTT Group's new vision – "Powering Life with Future Energy and Beyond," PTT has implemented a series of initiatives structured around three primary frameworks:

People: PTT places a strong emphasis on cultivating a workforce that embodies our organizational values. This involves nurturing a deep understanding of the SPIRIT values and reinforcing desired behaviors through a range of developmental programs accessible to all employees at every level. For instance, SPIRIT values are seamlessly integrated into various aspects of the onboarding process for new employees, including internships, and through targeted training sessions designed to instill a thorough comprehension of these values among managers and staff. The objective is to equip individuals with the skills to leverage organizational values as catalysts for effective teamwork, thereby empowering them to serve as influential leaders and role models who exemplify SPIRIT values in their daily endeavors.

Mechanism: In the realm of fostering SPIRIT behaviors through diverse mechanisms, PTT has seamlessly woven SPIRIT values into its human resource management protocols, spanning from recruitment procedures to performance assessments. This integration ensures that behaviors resonate with the organization's desired ethos. Moreover, initiatives have been launched to empower each department in championing SPIRIT values by devising bespoke ethical action plans tailored to their specific roles and duties.

Reinforcement: In the realm of fostering continuous understanding and behavioral development among employees, PTT places a strong emphasis on the "Tone from the Top" and active engagement of senior management in regular SPIRIT values promotion activities. This commitment is communicated through diverse channels including PR video clips, leadership messages, infographics spotlighting key organizational values such as integrity and ethics. These mediums effectively convey GRC (Governance Risk Compliance) principles and lessons learned, fostering a culture of learning and error reduction while promoting sustainable behaviors in integrity and ethics. Additionally, SPIRIT taglines have been crafted for internal communication to underscore the interconnectedness of SPIRIT values within the organization's work ethos and various initiatives. This initiative aids in nurturing employee understanding and awareness of embodying SPIRIT values as tangible aspects of their daily work routines.

Moreover, PTT has launched the PTT Innovation Boost Camp to further amplify the dissemination and practice of SPIRIT values, while simultaneously fostering a culture of innovation and collaboration among employees. This program equips participants from all business sectors within PTT with the requisite knowledge and skills to drive innovation. Through this initiative, over 135 participants from diverse business sectors within PTT have showcased innovative concepts and proposals for 27 projects under the themes of Sustainable Innovation and New Business. These pioneering ideas will be refined to align with our new vision and bolster PTT's strategic initiatives in new business development.

SPIRIT adherence (%)

Knowledge Management

In 2022, PTT inaugurated its inaugural Learning Organization master plan, leading to the adoption of the PTT LO Maturity Assessment to complement this initiative. Establishing baseline scores that year served as a benchmark for evaluating the effectiveness of knowledge management practices in the following years.

Knowledge management strength (%)