Performance Management

In Oil & Gas Company

Group 2 : Hariesya Ivan, Muhammad Arfan, Ali Hasyimi
Talent Management Final Assignment
 Company Operation in Indonesia

Operator, Base operations and expansion

• Manufactures premium lubricant oil for

• Produces new material for polyester which is automotive (motorcycles and passenger
used in clothing, food and drink packaging and cars) and commercial industrial
certain industrial applications, namely purified
terephthalic acid (PTA)
• The products are sold for domestic market,
mostly in Banten and West Java region
 Company Strategy
VISION
01 To be the most valued upstream business

02 STRATEGY
1. Quality Execution 2. Shifting to gas & advantaged oil 3. Return Led Growth

03
FOCUS
1. Safety & Environment 2. Our People 3. Deliver the plan 4. Build our future 5. Modernize & Transform

Values & Behaviors Code of Conduct

“Our People” focus on Internal Human Resource Development that :

1. Develop quality leaders
2. Create a truly global workforce Based on Developing organization culture that diverse and inclusive
3. Develop the right skill in the right place
 Employee Composition
Demography based on Job family and gender

Demography based on age from 2013 - 2017

Demography based on age in 2017

Third party

Technician

Indonesian

Expat

• Operation is the function with biggest population (48%)

• 26 % worker is women
 Performance Management - Definition
Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year,
in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting
objectives, identifying goals, providing feedback, and reviewing results.

01
1. By linking
. individual employee work efforts with the organization’s mission and objectives

2.
02 By focusing attention on setting clear performance expectations (results + actions & behaviors)

3.
03 Through the use of objectives, standards, performance dimensions, and other measures it focuses effort

04
4. Through regular check-in discussions, which include status updates, coaching, and feedback.

Ref :
• https://hr.berkeley.edu/hr-network/central-guide-managing-hr
 Performance Management Cycle
1. Planning
Performance Expectations = Results + Actions & Behaviors :
• Results are often measured through the use of objectives and standards
• Actions and Behaviors can be measured through the use of performance dimensions. Planning
Written, verifiable mutually understood performance expectations :
• Serve as an objective basis for communicating about performance
• Enable the employee to differentiate between acceptable and unacceptable results
• Increase job satisfaction because employees know when tasks are performed well
• Inform new employees of your expectations about job performance
• Encourage an open and trusting relationship with employees

2. Check-In Review Check-In

Effective observation and feedback can:

• Strengthen communication between you and the employee
• Help the employee attain performance objectives and meet standards
• Increase employee motivation and commitment
• Maintain and increase the employee's self-esteem
• Provide support
3. Review
Some goals of the performance review process are to help the employee: Strengthen communication between you and the
employee :
• Feel positive about the job
• Feel appreciated for specific contributions
• Benefit by specific, constructive feedback
• Keep informed about current and future performance objectives
• Keep motivated to do well and to develop
• Stay involved as a participant in the process
Ref :
• https://hr.berkeley.edu/hr-network/central-guide-managing-hr
 Characteristics of Petroleum Industry
A global survey found that the most important external forces impacting upon petroleum companies are
• Technological progress
• Environmental concern
• Workforce/skill availability
• Government influences

The petroleum industry is facing a major human resource challenge with a shortage of new talent with which
to replace today's ageing work force. Demand for experienced, qualified personnel is far greater than
availability in many parts of the world.
• A well-functioning performance management process should facilitate good management by good managers who are trained
as coaches and mentors rather than as evaluators and graders

• Today’s job market is highly dynamic and transparent. High-potential young employees want regular feedback and career
progression advice, not just “once and done” reviews.

(IBM report, 2010).

 The effectiveness of HR in Company

Recognizes the needs of individuals and has set out innovative working
practices that encourage employees to enjoy a happy and productive work
Flexible Working and life balance at every stage of their career
Information Technology infrastructure helps
support flexible working

Time to live
Provide extra time off and or additional benefit for occasion
when people work very hard and unsociable hours

Family time
Allowing people to contribute to their families without compromising their professional
development aspirations

Diversity and Inclusion

Ensures that the managers have the support they need to promote diversity and
Performance Management inclusion at every level
.
Company has a focused performance management system is one of the
best in the world
 Performance Management
Company does recognize that its high organizational
growth and market share is due to the employees
great performances (both individually and as a team).
• Company’s performance approach entails that
each business plan is designed to accomplish
elements of the group’s overall strategies.
• Objectives and milestones for each individual are
set in accordance with the team plan
• There is a direct link between the goals set by
board and that or other key businesses, and the
performance contracts of their executive
leadership.
• Standard approach is that, the executives’
performance is evaluated against their performance
contract.
Carries out an internal and external evaluation
processes in developing plans for group leaders –
Managers, peers and team members review leader’s
performance, using a 360° feedback tool, to identify
their top three relative strengths and weaknesses.
 Performance Management Implementation
My Job The company performance management based on company
Business Strategy + Values and behavior

values (safety, respect, excellence, courage, and one team) that

My Contribution to
safety, compliance, and encourage employees to contribute to Business strategy.
risk management Limit to 12
My Priorities priorities Performance evaluation is conducted using online performance
What I will deliver for management system, every employee must fill out “my plan”
near and long term
document contain :
How well l live the • Information and work plan
How do I do my job behavior that define the Min 3
behaviors
• Work priorities and how do they take action
values • Individual development

My development support

Performance management review is conducted twice a year :

1. Mid year (Jun – Jul)
2. End of year (Nov – Jan)

Discussion, feedback, and coaching could be done anytime.

 Performance Review Result
Indonesian Foreigner
Rating Rating
Plan Realization Plan Realization

Exceptional <10% 5.6% Exceptional <10% 8.3%

Exceeds Expectations <30% 29.4% Exceeds Expectations <30% 41.7%

Delivers Expectations 50-70% 63.7% Delivers Expectations 50-70% 50.0%

Below Expectation <10% 1.3% Below Expectation <10% 0.0%

Individual Performance Rating - Percentage distribution Individual Performance Rating - Percentage distribution
63.70%
50.00%
41.70%

29.40%

8.30%
5.60%
1.30% 0.00%

<10% <30% 50-70% <10% <10% <30% 50-70% <10%

Exceptional Exceeds Expectations Delivers Expectations Below Expectation Exceptional Exceeds Expectations Delivers Expectations Below Expectation

• Rating distribution is analyzed based on functions

• Overall the individual performance rating is still within the target / plan
Challenges
On time Performance Review
Despite the cycle of performance review already
determined each year, the implementation is always need
additional time

Quality of Performance review

Need improvement on performance review quality

Performance review procedures

Lack of policy and procedures understanding
related to performance management

Subjectivity
There is subjectivity during performance
evaluation
 • Evaluate the process and the system :
o Does the system help employee understand
their objective and how it contribute to strategic Continuous improvement on
Recommendation goal ? best practice proces and
o Do employee receive timely and frequent system usage
feedback ?
o Identify weakness of the system and process,
and do continuous improvement

• Create periodic reminder of the performance To have on time performance

management system to all people leaders review
• Put performance management execution as part of
KPI of people leaders

• Create guidance and routine socialization to all Better quality of performance

people leader thru online system and provide Q&A management
forum

• Create calibration meeting in the final process prior

to submission / decision in order to maintain Improve objectivity during
assessment consistency and objectivity performance review
Thank You