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Sustainable Human Resource Management

Management Approach

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:

Strategic ObjectiveApproach
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 that of PTT's Leadership and Learning Institute, as well as Functional Academy for each career path.
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, expectations and age 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:

  • Professional Consultants stipulating guideline for employees' professional development
  • Human Resource Business Group Committee (HRBG) examines human resources management
  • Human Resource Committee (HRC) proposes policy and provides guidance on human resource management.
  • PTT Human Resource Management considers and approves principles and guidelines of PTT's principles and management approach
  • Structure, Remuneration and Manpower Committee approves structure, positions and work rates, as well as manpower
  • Human Resource Group Alignment with Coordination Management Committee (HRAC) manages human resource matters to align with PTT's strategy and direction
  • PTT Management Committee advising and providing recommendations to the Chief Executive Officer and the Management Director, facilitating key decisions regarding strategy, business directions, long term operations, performance, investment plan, and budget.
  • Human Resource and Educational Scholarship Committee focuses on international scholarships, trainings, and development programs for employees below level nine to become future executives
  • PTT Union Relations provides opinions, fosters and promotes union relations to address internal conflicts within PTT, including adjustment of regulations, addressing grievances, or ameliorate employment conditions

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.


Recruitment

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.

PTT has a systematic recruitment and selection system, communicating job vacancies through various channels both domestic and international. This ensures diverse applicants. There are human resource department at a business level, working with a business unit, and together identify needs, manpower and capacity required. A human resource plan is then developed to attract and select applicants with capability suitable to the business needs.

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.


Attraction

PTT's strategies and policies to foster employees' motivation in-term of remuneration, career path and etc. are as follows:

  • Improve criteria on position and appointment to be standardized throughout PTT, ensuring employees have good performance and capacity. This helps promote advancement that is distinctive from other employee groups
  • Annual benchmarking research of leading companies' remuneration practices, ensuring competitive remuneration of employees. There is adjustment reflecting employees' experience, work proficiency or greater responsibilities
  • Regularly benchmarking research of leading 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.
  • Remuneration is linked to individual performance, stipulating for employees of all levels to set goals and targets at an individual level. The goals and targets must be aligned with business goals and strategy, while justly reflecting the different performance results among employees.
  • 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 their eligibility as candidates for internal vacancies. The promotion will be considered by the committees in a transparent and fair way
  • 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, such as alternative welfare, or medical treatment of family members

Age RangeWelfare and Benefits
Employees
  • 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
Retiring Employees Pre-Retirement Training Programs, such as training on senior citizen laws, the inheritance law, and healthcare for senior citizens.
Retirees
  • Farewell sessions for retirees providing 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 Assessment

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

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.


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 Career Management 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.

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

PTT analysed the Group's needs in a 5-year timeframe, and selects employees with high capacity accordingly. PTT creates an individual development plan, sets targets and goals. This facilitates their readiness prior to being appointed in key positions. Furthermore, there are scholarships provided to employees whose interests aligned with PTT's strategy.

PTT prioritizes human capital development at all levels through PTT Leadership and Learning Institute (PLLI, promoting individual development and learning through core courses. These comprise Leadership Development Program and Core Program, including knowledge and capacity training through Functional Program. The arrangement supports PTT's business, both presently and forthcoming, by focusing on integrating various learning forms suitable to the learners according to Adult Learning. This helps creates an environment that facilitates Learning and Sharing Experience. The institutes focus in generational learning, practical learning, case-study. As of now, PLLI also used digital tools to aid employees' learning beyond the classrooms.

Curriculum Structure of the PTT Leadership and Learning Institute



Employee Engagement

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 2018, PTT reviewed the PTT Engagement Model and adjusted factors from 6 to be 5 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:


Labour Rights

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, labour 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 recurrence


Living Wage

Composition of PTT's living wage and remuneration includes:

  1. Salary is in accordance with the compensation structure that is comparable to Thailand's leading businesses and varies according to the work value of each level of the employee. Salary is paid once a month on the 28th of every month. PTT also encourages the negotiation process through the State Enterprise Employees Union of PTT Public Company Limited, with the Relations Committee acting in charge of complaints, claims or expectations of employees.
  2. Welfare and benefits inlcude leave, overtime, extra money for shift workers stationed in the other provinces/abroad, expenses for traveling to work, medical treatment, health insurance system, provident fund, financial aid, savings, access to trade unions, including a safe and hygienic workplace. In addition, employees working in the provinces and not domiciled in that province will have the right to receive provincial work fees, house rent, or arranged accommodations for some areas. Employees who have to work offshore will also receive additional financial support for offshore operations. For employees who work regularly in foreign countries, PTT provides welfare and benefits for employees, taking into account the suitability of the terrain, weather, society, environment, cost of living, etc. so that employees, including families, can live and work in that country. The determination of the rate of welfare payments and various benefits is determined by the survey study from the world's leading consultants in order to standardize the pay to leading businesses in that country.
  3. Bonuses are part of the annual compensation of employees that reflect the different performance of employees. PTT will pay bonuses to employees according to PTT's performance in that year, which will be paid once a year at the beginning of the following year as approved by the PTT Board.

Diversity

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.

PTT complies to the Royal Decree on State Enterprise (2543 B.E), setting up PTT State Enterprise Union comprising of chief executive officer and director (as PTT's Board), serving as president, follows by 9 employer and 9 employee representatives. This totals to 19 people. They are responsible in conducting 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.


Knowledge Management

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.





Performance

Progress Against Plan

Plan2018 Targets2018 Accomplishment2019 Targets
Personnel recruitment Recruit employees at 72% against the plan. 94% 80%
Capacity development to prepare for future growth at the management level Prepare succession plans for 75% of the succession rate by considering demand and supply period of five year 100% 95%
Knowledge sharing within PTT Group Each functional group/ business unit/ company should conduct knowledge sharing activities across the Group at least twice a year. (17 sites) 100% 100%
Knowledge sharing within PTT Group to increase capacity and create business value Each functional group/ business unit/ company possesses 20 additional Practices/Applied Practices/Lessons Learned, or demonstrates a 10% increase in general/academy knowledge to total knowledge assets up to 2017. Showcase financial and non-financial benefits received from utilizing stored knowledge assets, complete with evidence. 100% (17 Sites) 100% 100%

Recruitment

In 2018, PTT has improved e-Recruitment to enhance efficiency of database management and candidates' profile storage. The improvements include monitoring the progress of each requested position, expansion capacity to carry PTT Group companies and notifications system for applications to view their application status. PTT also improved the process of Onboarding Program resulting in new employee's quick adjustment on organization culture and response to PTT expectations.



Attraction

2018 Performance on Attraction, as follows:

TopicProgress
Standardization of criteria for appointment and promotion throughout PTT The Employee Engagement score regarding Career Opportunity category (The score from 2018 of 58% remains the same with 2017)
Adjustment of pay rise policy for promoted employees Employee Engagement score under Rewards & Recognition (The score in 2018 increased by 1% compares to 2017; from 59% to 60%)

Performance Assessment

PTT's employees employee needs to identify individual performance indicator annually in the performance evaluation system. The indicators should relate to organization goals and objectives. PTT assigned managers to monitor employees' performance for at least 3 times per year and communicate with employee constantly to ensure the progress and targets are achieved. Based on manager's evaluation, all employees have achieved their goals and plans.

Topic2017 Performance
(%employees who are required for a performance evaluation)
2018 Performance
(%employees who are required for a performance evaluation)
Indicator Identification 100% 100%
Performance Evaluation 100% 100%

Human Capital Development

All employees must assess their success profiles and develop their Individual Development Plans (IDP), consisting of training (10), teaching (20), and application (70). The IDP, established by the PTT Leadership and Learning Institute (PLLI), guides employee growth and capacity development at all levels – from entry to management, and provides courses including Orientation, Core Courses, management training courses, and courses that align with the company's strategy. In 2018, 84% of employees developed IDPs, which are also a part of the career management process. At the management level, IDPs enable PTT to have a sufficient supply of qualified management staff to meet organizational demand with a current target ratio is Demand 1: Supply 3.


Employee Engagement

PTT has set a target for Employee Engagement and made it Corporate KPI, which has been deployed to all top managers. After earnestly improving and monitoring the progress on employee engagement, the employee engagement score in 2018 was 71%, which was 1% more than last year, while the overall employee engagement score in global and Asia-Pacific remains at only 65%


Labour Practices

In 2018, 2,235 PTT employees are members of PTT's labor union, or 60.4% of total employees.


Diversity

PTT offers equal opportunities to everyone regardless of race, religion, gender, age, social status, and educational background in order to recruit diverse human capital corresponding to the needs of the organization and of different customers. PTT benefits from its staff's diversified cultural perspectives and the variety of employees' capabilities, which serve to broaden the knowledge and perspectives of staff in the teams and foster creativity to the benefits of PTT and wider society.



Complaints and Grievances

PTT strictly adheres to relevant labor laws and regulations in its governance and operations, as evidenced by the alignment between PTT's internal regulations, requirements, and practice approaches related to human resources, to such laws and regulations. This not only supports good organizational relations, but also results in zero complaints and legal cases on labor issues.

Indicator: Corruption Cases


Indicator: Breaches in Business Compliance


Note:

There have been 6 cases of breaches in business compliance in 2018, due to negligence, fact concealment, violations of rules, regulations, or orders of PTT, as well as those intentionally slowed down the performance. PTT has investigated and addressed the issues according to its process.


Knowledge Management

Regarding PTT Group's Knowledge Management Policy defined by the PTT Group KM Committee; and of efforts by all operational areas whether within PTT or its subsidiaries through various KM Capability Build-up Programs, contribute to the continued increase in knowledge assets and experts within PTT Group.

Besides knowledge management within the organization and annual increases in business value, in 2015 the Knowledge Management Team of the Organizational Development Department developed the Knowledge Management Maturity Assessment Survey as a tool to evaluate organizational capacity in knowledge management from various dimensions. The results will be used towards improving efficiency of the knowledge base in business operations, and enhancing competitiveness to transform PTT into an organization of learning by 2020.


Indicator: KM Assessment Score

Indicator: SPIRIT Commitment Score

Target: PTT sets the SPIRIT Commitment Score target at 74%* by 2020

* The Top Quartile of Asia Pacific Commitment Score on average of 5 years