BACHELOR’S IN OCCUPATIONAL SAFETY AND HEALTH

(HONs)

SAFETY LEADERSHIP

(FAHS 3123)

LECTURER: MR. MOHD FADZIL BIN HAMID

GROUP MEMBERS:
MUHAMMAD AZHAR BIN MUHAMMAD AZRI (BOSH 2107-3786)
EZZAT SYAZWI BIN ZAHARIN BOSH 2107-3633
MATAN MUHAMAD ISZWAN BIN MATAN IBRAHIM (BOSH 2107-3638)
PRESTON PATRICK BERUNDANG (BOSH 2107-3636)
MUHAMMAD MIKYAD MIRZA BIN MAZEREE (BOSH 2107-3752)
INTRODUCTION

Malaysian oil and gas business PETRONAS, also known as Petroliam Nasional Berhad
(Malaysian National Oil Company Inc.), was founded in 1974. The government of Malaysia
owns this business in its entirety. The corporation oversees developing and enhancing the
value of all of Malaysia's oil and gas resources, which are vested in it. The Fortune Global
500 lists Petronas as one of the largest companies in the world. Additionally, according to
Fortune, Petronas is both the most lucrative firm in Asia and the 12th most profitable
company overall. Petronas is heavily involved in practically all facets of the oil and natural
gas sectors through subsidiaries and joint ventures, from upstream activities like exploration
and extraction to downstream activities like refining and distribution. The Petronas Group
has 103 fully owned subsidiaries, 19 partially owned businesses, and 57 affiliated enterprises
as of the end of March 2005. The Petronas Group, which consists of several businesses,
engages in a variety of operations related to oil and gas. The Group is involved in a broad
range of petroleum-related activities, such as upstream oil and gas exploration and
production to downstream oil refining, marketing and distribution of petroleum products,
gas processing and liquefaction, operating gas transmission pipeline networks, marketing
liquefied natural gas, manufacturing and marketing of petrochemicals, shipping, automotive
engineering, and real estate investment. The three main business strategies used by
PETRONAS are integration, value addition, and globalisation. Furthermore, their business
activities include upstream oil and gas exploration and production, downstream oil refining,
marketing and distribution of petroleum products, trading, gas processing and liquefaction,
gas transmission pipeline operations, liquefied natural gas marketing, petrochemical
manufacturing and marketing, shipping, and property investment.
 Petronas has undergone important milestones as a firm since it changed from a local
national oil company to a fully integrated oil and gas international organisation. Some of
their greatest successes include the increase in equity Petronas made in the APA Group in
2007 that made it the sole owner of one of Australia's leading energy transmission and
distribution companies. ExxonMobil Exploration and Production Malaysia Inc and PETRONAS
Carigali Sdn Bhd and Petronas inked the fundamental agreements for a new PSC in 2008,
which would let the two PSC partners to maintain their upstream involvement in seven oil
fields offshore of Peninsular Malaysia.

As a good corporate citizen, PETRONAS is dedicated to responsibly managing our

petroleum resources and operations by striking a balance between business, environmental,
and social goals to ensure sustainable development for the benefit of the population and
local community in the host countries wherever we operate.
LEADERSHIP STYLES USED BY PETRONAS.

Based on several research done over the years, we found that the leadership styles
currently in used by Petronas leadership are transformational and transactional leadership
with a bit of a hybrid style of leadership due to the diversity of the workforce in the
company

Transformational leadership

According to Antonakis et al,2003, transformational leadership is known as the

behaviour of the leader who can influence the subordinates. Leaders are dynamic, proactive
and encouraging teammates to have high awareness in order to reached desired goals.
These people are often charismatic and inspired others and will act as a role model,
encouraging their subordinates to do work beyond expectation and motivates them towards
successful of the work done. These leaders move their followers to be above their own self-
interest for the good of the group. The work being done are more efficient because the
leaders are always finding ways of working more efficiently. The traits that transformational
leaders have are idealized influence, inspirational motivation, intellectual stimulation and
individualized consideration.

Transactional Leadership

Transactional leadership refers to the leader characteristics who likes to give

rewards such as promotion, praise and withholds punishment in exchange for work
performance and complies with role expectations. This style of leadership depends on the
leader’s power to reinforce subordinates for their successful completion of the bargain.
They based on the exchange of resources where the leader would provide rewards to their
subordinates if they achieved and accomplish the objectives and punish them if their effort
are not enough or low performance. The three characteristics of transactional leaders are
contingent reward, active management by exception and passive management by
exception.

The transformational leadership or have also been called relationship-oriented

leadership which focus on future development while transactional leadership also known as
task-focused leadership which focused on performance and rewards.
Hybrid Style

To handle a diversified workforce like Petronas, its leaders possess hybrid leadership
style that has at least a minimum mix of attributes, such as diplomacy, strategic,
transformational, team player, cross-cultural, facilitative, transactional, coaching,
charismatic and visionary. These attributes are required in a business organization that is
not only cross-generation but also cross-cultural to sustain Petronas as a High- Performance
Organization.

Autocratic leadership style is a no-no for any HPO as this leadership style dictates
everything that their employees must do, which results in creating a work environment that
does not foster creativity and innovation. Such work environments will demotivate
employees and make them dissatisfied. However, once a decision, target, direction, and
mission & vision of the company has been set, some level of autocratic foresight is a must to
ensure all employee stay on the course.

A strong leader must also avoid the Laissez-faire leadership style, at least not all the
time as employees need to be reminded, they need guidance and motivation to ensure that
they stick to achieving their key performance indicators (KPIs). Therefore, a leadership style
of facilitating and coaching is crucial.
ANALYZE ON HOW THE EFFECTS OF LEADERSHIP STYLE COULD INFLUENCE THE WORKERS’
PERFORMANCE.

In Petronas, there two type leadership that and they are transformational leadership
and transactional leadership. This which give out how much they care about their leadership
in the organization and with these leadership style they can perform many types of
programs based on their leadership style toward the organization and toward the workers
when they are leading them. Leadership is crucial to maintain the organization behaviour
and to control the manpower of each worker that are working with Petronas.

Now, the effect of using transformational leadership toward the workers

performance haves using this leadership style in to review worker performance. The pros of
using transformational leadership style are it can bring out the intrinsic motivation among
workers in the organization. Workers with increased intrinsic motivation will become more
effective and efficient towards their work performances which supposed to be converted
into responsive and perform efficiently in their work. For example, the workers gain boast
on their motivation on doing their work if the leader can come out with a plan that will
benefit the workers and the organization with this it can help the performance of the
company of the company to increase and help the company to improve in workers. Next,
transformational leadership can help working burnout through working intrinsic motivation
with this style of leadership the leader can indicates support for honest and fair matters
associated with workers because they will feel less exhausted and motivated on doing their
work. Moreover, with this type of leadership it will help the workers to become intrinsic
motivated that are driven by enjoyment and interest in their work which more likely to work
hard at their jobs and feels less fatigue, less emotional exhaustion, and increase desire to
participate in the organization.
 Furthermore, Petronas also use one more leadership style to lead the organization
which call transactional leadership which is a system that give out rewards and punishment
system that can motivate the workers to achieve result. The leadership can create an easy-
to-understand system which can help the workers to understand on how the system
working and will benefit them while they are under the system. The system is a way to get
workers to help them focus on the current project and to help them to achieve the goal of
completing the project and getting the reward for their hard work on the project that the
company entrusted them to finish. For example, the leader of the group will give out the
details an instruction about the project and they will be reward for them to finish the
project for their commitment on doing the work. The worker will be pleased to hear about
the reward which they will be only focusing on one project only and will not overload them
with a lot of work that make them easy to lost motivation on doing multiple jobs. Next, this
style can help the workers to realize their impact on the company benefit which can give
them a moral boast because with their hard work they manage to give out good outcome to
company sources which can lead increase productivity and the growth of the company. The
workers are only working on a certain goal which can lead a massive growth to the
company and help the company to open up more efficient way to cooperate with other
department which can be increase in the company revenue and the income sources for the
company and giving out the company a good return for the worker because of the impact
towards the company have given out an excellent result and increase their morale with the
praising them for their hard work for the company.
SUGGESTION ON HOW TO REDUCE THE NEGATIVE EFFECTS OF LEADERSHIP STYLE AT
WORKPLACE IN ORDER TO INCREASE WORKERS’ PERFORMANCE AND COMPANY PROFIT.

Teams and organisations are swiftly infected by poor leadership, like a virus. By
promoting a lack of concern for doing a good job, taking away the flexibility that teams have
when they are supported to innovate, and eroding fulfilment since no one is ever
acknowledged for the work they do, it devastates morale. Over time, morale starts to
negatively impact workplace dynamics and destroy business culture. No matter what
challenges leadership is facing, there are two constants that, as soon as they are put into
practise, will increase any leader's or team member's ability.

First and foremost, the business needs to be transparent. Particularly when it comes
to restructuring and job eliminations, employees can tell when there is instability in the
company. Between management and employees, trust is created via transparency and
open, sincere communication. People will have more time to intellectually and emotionally
get ready for change if there is advanced warning that it is coming, and they will have a
better foundation for turning around and moving forward once the changes have occurred.

The next step is for the leaders to start talking with their team as soon as possible.
Performance management is evolving, making room for more regular, informal, and sincere
dialogues. When it comes to performance difficulties, a worker who consistently
underperforms in a position erodes confidence and advancement. When it's feasible, talk
about ways to help your employee perform better or start a conversation about quitting and
deciding on a transition strategy. This indirectly promotes the increase in company’s profit.

On top of that, the company should take notice into account. Giving notice can aid in
a smooth transition for both the company and the individual. It is predicated on the
fundamental idea that where trust and respect are given, they are likewise given back. Close
management and open communication between HR, the manager, and the employee are
necessary for this arrangement to be successful. This strategy, when feasible, gives the
worker the time to adjust to the news, finish projects, and start getting ready for their job
hunt.
 Lastly, support career transitions should be present. Unexpected job loss is a
stressful, overwhelming, and challenging life experience for even the most accomplished,
self-assured, and bright people. Individuals have the chance to consider their talents, define
their goals, and create a plan that will help them get a well-suited job more quickly by taking
part in a career transition programme, particularly one that focuses on one-on-one support.
SUMMARY

In conclusion, PETRONAS, Malaysia's oil and gas company, was established in 1974.
This company is entirely owned by the Malaysian government. Petronas is significantly
involved in virtually every aspect of the oil and natural gas industries. Fortune Global 500
ranks it as one of the world's largest corporations. Petronas has passed significant
milestones as a corporation since its transformation from a local national oil company to a
fully integrated oil and gas multinational organisation. Some of their most notable
achievements include Petronas' growth in equity in the APA Group, which became it the
sole owner of one of Australia's largest energy transmission and distribution firms. Petronas'
leadership styles are defined as transformative and transactional, with a bit of a mix owing
to the workforce's diversity. Transactional leadership refers to the traits of a leader who
enjoys giving rewards such as promotion and acclaim while withholding punishment in
exchange for work success. Transformational leadership, also known as relationship-
oriented leadership, focuses on future growth, whereas task-focused leadership focuses on
performance and incentives. Autocratic leadership prescribes what their subordinates must
accomplish, resulting in a work atmosphere that discourages originality and innovation.
Leadership is essential for maintaining organisational behaviour and controlling each
worker's manpower. There are two types of leadership at Petronas: transformational
leadership and transactional leadership. Transactional leadership is a reward and
punishment system that motivates employees to accomplish results. The group's leader will
provide project specifics and instructions, and they will be rewarded if they complete the
job. The employee will be thrilled to learn about the incentive, which can lead to increased
productivity and company growth. This method can assist employees in seeing their value to
the firm.