meeting hr challenges through organizational transformation processes in the hydrocarbon sector
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UPES does not own the content in this presentation. These are presentations presented in 2002 during the 2nd HR Round Table.TRANSCRIPT
Inaugural Address
Meeting HR Challenges through Organizational Transformation Processes In the Hydrocarbon Sector
: M.B. Lal , C&MD, HPCL
Presented at HR Round Table organized by ISPe & Presented at HR Round Table organized by ISPe & UPES, DehradunUPES, Dehradun
2
Agenda
Hydrocarbon Sector – Characteristics/ Trends
Indian Hydrocarbon Sector – Key Challenges and Imperatives
Implications on HR
Conclusion
3
Hydrocarbon Sector – Characteristics/ Trends
Sector lends itself to a globalized economy
Imminent entry of multinationals in Indian downstream little time to get ready to face the formidable competition
Indian oil companies now fully exposed to volatility in international markets Opening up of the Indian economy
Lowering of tariff barriers
Deregulation of the oil sector
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Hydrocarbon Sector – Characteristics/ Trends (contd.)
More stringent environmental compliance norms Implications on funds requirement and efficiency improvement
Sector is an early adopter of developments in ancillary industries Implications on diverse skills required
Most companies in the oil sector have been operating for decades in a protected environment, under Government control Implications on skills, procedures, etc.
5
Agenda
Hydrocarbon Sector – Characteristics/ Trends
Indian Hydrocarbon Sector – Key Challenges and Imperatives
Implications on HR
Conclusion
6
Indian Hydrocarbon Sector – Key Challenges and Imperatives
Paradigm shift – From an era of assured returns and guaranteed profits, to one of market determined pricing and returns
Key Imperatives Quality, in everything we do
Efficiency & Speed
Customer service, Customer satisfaction
Continuous improvement
Profitable operations
Ability to absorb and thrive in change, faster than competition
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Agenda
Hydrocarbon Sector – Characteristics/ Trends
Indian Hydrocarbon Sector – Key Challenges and Imperatives
Implications on HR
Conclusion
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Implications on HR – Summary
Build a “Competent & Learning Organisation”
Create systems to promote information/ knowledge sharing
Build a “Culture of High Performance”
Decentralise specific HR initiatives
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Implications on HR – Build a “Competent & Learning Organisation”
Given the pace of change, it is difficult to predict what skill sets might be required in the future
Need to educate/ update skills on a continuous basis
Need to eradicate the “fear” in the minds of our people (“We are too old to learn now” syndrome)
More important than the specific skill/ capability itself is the creation of the right environment that will provide our people the encouragement and confidence to adapt/ adopt/ learn
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Implications on HR – Create systems to promote knowledge sharing
Traditionally, Indian companies dependent on experts who “have it all in their heads”
Tremendous challenge to standardize all of this intellectual capital Tacit knowledge
Experience
Know-how which “goes home at night”
Need to transform the above into intellectual assets that remain and work for the company, at all times!
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Implications on HR – Build a “Culture of High Performance”
Need high performance from employees which is possible when employees have Sense of belonging towards the organisation
Desire to perform better
Motivation to take the initiative
Motivation to take decisions
Need to transform our employees toward being “fully self-expressed” individuals
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Implications on HR – Build a “Culture of High Performance” (Contd.)
Role of HR Reward employees who have performed well
Promote culture of opennes and integrity
Develop leadership qualities at every level of the management structure (coupled with empowerment)
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Implications on HR – Build a “Culture of High Performance” (contd.)
Need to change the organisation in the following ways: Reactive Proactive
Hierarchical Collegial
Internally Focused Externally focused
Q: Exactly how do we become a proactive, collegial, externally focused organisation?
A: Only by bringing about a fundamental shift in mindset and attitude of individuals that make up the organisation
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Implications on HR – Decentralise specifics of HR Implementation
Need global policies and global values but local implementation.
HR needs to tailor make it’s policies and rules to facilitate the business unit without jeopardizing the harmonious working of the organisation.
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Agenda
Hydrocarbon Sector – Characteristics/ Trends
Indian Hydrocarbon Sector – Key Challenges and Imperatives
Implications on HR
Conclusion
“The art of progress is to preserve order amid change and to preserve change amid
order”
THANK YOU!